Critical Comparison: Trustmark (TRMK) vs. Its Rivals

Trustmark (NASDAQ:TRMK) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Trustmark to related companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Trustmark and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	4	1	1	2.50
Trustmark Competitors	7484	30232	27813	1478	2.35

Trustmark currently has a consensus target price of $47.38, suggesting a potential upside of 4.19%. As a group, “Banks” companies have a potential upside of 14.29%. Given Trustmark’s competitors higher possible upside, analysts clearly believe Trustmark has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Trustmark and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Trustmark	$1.12 billion	$224.13 million	11.37
Trustmark Competitors	$9.95 billion	$2.42 billion	21.29

Trustmark’s competitors have higher revenue and earnings than Trustmark. Trustmark is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Trustmark and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	20.90%	10.78%	1.20%
Trustmark Competitors	15.65%	9.43%	0.93%

Dividends

Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Trustmark pays out 25.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Trustmark has raised its dividend for 1 consecutive years.

Volatility and Risk

Trustmark has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Trustmark’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 1.7% of Trustmark shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Trustmark beats its competitors on 8 of the 15 factors compared.

About Trustmark

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 operates through three segments: General Banking, Wealth Management, and Insurance. It offers checking, savings, and money market accounts; certificates of deposits and individual retirement accounts; 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, as well as treasury management services. The company also provides mortgage banking services, including construction financing, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing. In addition, it provides wealth management and trust services, such as administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services. Further, 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. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.