Trustmark (NASDAQ:TRMK) and First United (NASDAQ:FUNC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Earnings and Valuation
This table compares Trustmark and First United’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Trustmark||$683.25 million||3.16||$149.58 million||$2.21||15.16|
|First United||$67.33 million||2.43||$10.67 million||N/A||N/A|
Trustmark has higher revenue and earnings than First United.
Volatility and Risk
Trustmark has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, First United has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. First United pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Trustmark pays out 41.6% of its earnings in the form of a dividend.
This is a summary of recent ratings and target prices for Trustmark and First United, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trustmark presently has a consensus price target of $32.33, indicating a potential downside of 3.51%. Given Trustmark’s higher probable upside, analysts clearly believe Trustmark is more favorable than First United.
Institutional and Insider Ownership
66.7% of Trustmark shares are held by institutional investors. Comparatively, 37.4% of First United shares are held by institutional investors. 1.5% of Trustmark shares are held by company insiders. Comparatively, 4.3% of First United shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Trustmark and First United’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Trustmark beats First United on 11 of the 13 factors compared between the two stocks.
Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States. The company offers checking, savings, and money market accounts; individual retirement accounts; certificates of deposits; financing for commercial and industrial projects, income producing commercial real estate, owner-occupied real estate, and construction and land development; and installment and real estate loans, and lines of credit. It also provides mortgage banking services, including construction financing, production of conventional and government insured mortgages, and secondary marketing and mortgage servicing; overdraft facilities; and treasury management services. In addition, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; and life and health insurance, and personal line policies for individual customers, as well as provides an intermediary vehicle for the provision of loans or investments in low-income communities. Further, it engages in the administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and provision of corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services. As of December 31, 2018, the company operated 181 full-service branches and 14 limited-service branches; 178 ATMs and 4 interactive teller machines (ITMs) at on-premise locations; and 61 ATMs and 3 ITMs at off-premise locations. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.
About First United
First United Corporation operates as the holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. The company offers various deposit products, including checking accounts, savings and money market accounts, regular and individual retirement accounts (IRA) certificates of deposit, Christmas savings accounts, college savings accounts, and health savings accounts; Certificate of Deposit Account Registry Service program and Insured Cash Sweep program to municipalities, businesses, and consumers; and commercial customers packages, which include treasury management, cash sweep, and various checking opportunities. It also provides loans, such as commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings; residential mortgage loans; home equity lines of credit; residential real estate construction loans; indirect and direct auto loans; and other secured and unsecured lines of credit and term loans. In addition, the company offers various trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts that consist of IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning services; insurance products; brokerage services; and safe deposit, and night depository facilities. It operates 25 banking offices, 1 call center, and 26 automated teller machines in Allegany, Frederick, Garrett, and Washington counties in Maryland; and in Mineral, Berkeley, and Monongalia counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.
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