Financial Comparison: Virginia National Bankshares (NASDAQ:VABK) & Trustmark (NASDAQ:TRMK)

Trustmark (NASDAQ:TRMKGet Free Report) and Virginia National Bankshares (NASDAQ:VABKGet Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Dividends

Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 3.3%. Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 4.5%. Trustmark pays out 35.8% of its earnings in the form of a dividend. Virginia National Bankshares pays out 41.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Virginia National Bankshares has increased its dividend for 1 consecutive years. Virginia National Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Trustmark and Virginia National Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trustmark 0 3 1 0 2.25
Virginia National Bankshares 0 0 0 0 N/A

Trustmark presently has a consensus target price of $32.75, indicating a potential upside of 18.06%. Given Trustmark’s higher probable upside, equities analysts plainly believe Trustmark is more favorable than Virginia National Bankshares.

Institutional and Insider Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 37.4% of Virginia National Bankshares shares are held by institutional investors. 1.5% of Trustmark shares are held by company insiders. Comparatively, 12.6% of Virginia National Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Trustmark and Virginia National Bankshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trustmark $658.01 million 2.58 $165.49 million $2.57 10.79
Virginia National Bankshares $79.09 million 2.00 $19.26 million $3.18 9.28

Trustmark has higher revenue and earnings than Virginia National Bankshares. Virginia National Bankshares is trading at a lower price-to-earnings ratio than Trustmark, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Trustmark has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Trustmark and Virginia National Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trustmark 13.82% 10.04% 0.88%
Virginia National Bankshares 21.09% 11.73% 1.07%

Summary

Trustmark beats Virginia National Bankshares on 9 of the 16 factors compared between the two stocks.

About Trustmark

(Get Free Report)

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.

About Virginia National Bankshares

(Get Free Report)

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.

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