Analysis of Trustmark (NASDAQ:TRMK) and WesBanco (NASDAQ:WSBC)



Seal of approval (NASDAQ: TRMKreceived rating) and Wes Banco (NASDAQ:WSBCreceived rating) are both small financial companies, but which one is the better deal? We’ll compare the two companies based on the strength of their dividends, analyst ratings, earnings, risk, valuations, profitability, and institutional ownership.

Analyst Recommendations

This is a summary of the current recommendations for Trustmark and WesBanco as provided by MarketBeat.com.

sell reviews keep ratings Buy reviews Strong buy recommendations rating score
seal of approval 0 0 0 0 N / A
Wes Banco 1 4 0 0 1.80

Trustmark currently has a consensus price target of $30.00, suggesting a potential upside of 7.87%. WesBanco has a consensus price target of $34.67, suggesting a potential upside of 8.60%. Given WesBanco’s higher potential upside potential, analysts clearly believe WesBanco is cheaper than Trustmark.

Score & Rating

This table compares the revenue, earnings per share and valuation of Trustmark and WesBanco.

gross receipts price/sales ratio net income earnings per share price-earnings ratio
seal of approval $676.13 million 2.53 $147.37 million $1.99 13.97
Wes Banco $617.75 million 3.11 $242.26 million $3.15 10.13

WesBanco has lower revenue but higher revenue than Trustmark. WesBanco is trading at a lower price-to-earnings ratio than Trustmark, suggesting it’s the cheaper of the two stocks at the moment.

dividends

Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 3.3%. WesBanco pays an annual dividend of $1.36 per share and has a dividend yield of 4.3%. Trustmark pays out 46.2% of its earnings in the form of a dividend. WesBanco pays out 43.2% of its profits in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for years to come. WesBanco has increased its dividend for 12 straight years. WesBanco is clearly the better dividend stock because of its higher yield and longer track record of dividend growth.

Risk & Volatility

Trustmark has a beta of 0.9, meaning its stock price is 10% less volatile than the S&P 500. In comparison, WesBanco has a beta of 0.93, meaning its stock price is 7% less volatile than the S&P 500 S&P 500.

profitability

This table compares the net margins, return on equity, and return on assets of Trustmark and WesBanco.

net margins return on equity return on investment
seal of approval 18.77% 7.74% 0.77%
Wes Banco 35.42% 8.42% 1.26%

Institutional and Insider Ownership

73.7% of Trustmark shares are owned by institutional investors. In comparison, 60.6% of WesBanco stock is owned by institutional investors. 1.1% of Trustmark shares are owned by insiders. By comparison, 3.2% of WesBanco stock is owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments, and large wealth managers believe a company is poised for long-term growth.

summary

WesBanco beats Trustmark on 12 of the 15 factors compared between the two stocks.

About Trustmark (received rating)

Trustmark Corporation functions as the bank holding company of Trustmark National Bank, which provides banking and other financial solutions to individuals and businesses throughout 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 deposit and individual retirement accounts; Financing of commercial and industrial projects, revenue-generating commercial real estate, owner-occupied real estate and building and land development; and installment and real estate loans and lines of credit, and treasury management services. The company also provides mortgage banking services, including mortgage lending, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing. It also offers wealth management and fiduciary services such as: B. the administration of personal trusts and estates; administration of investment accounts for individuals, employee benefit plans and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement planning and investment management services. In addition, the Company provides business insurance products and services for medical, construction, manufacturing, hospitality, real estate, and group life and health insurance; and life and health insurance and personal insurance for retail customers. As of December 31, 2021, it operated 167 full-service stores and 13 limited-service stores; and 198 ATMs and 69 interactive ATMs. The company was founded in 1889 and is headquartered in Jackson, Mississippi.

About Wes Banco (received rating)

WesBanco, Inc. acts as the bank holding company for WesBanco Bank, Inc., which provides retail, corporate, escrow, brokerage, mortgage banking and insurance services. It operates through two segments, Community Banking and Trust and Investment Services. The company offers business, individual and time deposit accounts; money market accounts; interest-bearing and non-interest-bearing sight deposits and savings deposits; and certificates of deposit. It also offers commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to buy, build or refinance the borrower’s home; home equity lines of credit; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats and other recreational vehicles, as well as home installment loans, unsecured home improvement loans and revolving lines of credit; and commercial, mortgage and personal installment loans. In addition, the company offers trustee and investment services and various investment products including mutual funds and annuities; and securities brokerage services. In addition, WesBanco, Inc., through its non-bank subsidiaries, operates as an agency specializing in property, casualty, life and property insurance, and the sale and administration of personal and commercial benefit plans; provides broker-dealer and discount brokerage services; holds securities and loans; and owns and leases commercial real estate and acts as investment advisor to a family of mutual funds. As of December 31, 2021, the Company operated 206 branches and 203 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, southern Indiana and Maryland and seven loan manufacturing offices in West Virginia, Ohio, western Pennsylvania, Maryland and northern Virginia. Founded in 1870, WesBanco, Inc. is headquartered in Wheeling, West Virginia.



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