Head-To-Head Analysis: Trinity Capital (NASDAQ:TRIN) and Amalgamated Financial (NASDAQ:AMAL)

Trinity Capital (NASDAQ:TRIN) and Amalgamated Financial (NASDAQ:AMAL) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Trinity Capital and Amalgamated Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Capital	1	1	5	0	2.57
Amalgamated Financial	0	2	1	0	2.33

Trinity Capital currently has a consensus price target of $16.44, suggesting a potential downside of 0.50%. Amalgamated Financial has a consensus price target of $33.50, suggesting a potential downside of 11.89%. Given Trinity Capital’s stronger consensus rating and higher possible upside, research analysts plainly believe Trinity Capital is more favorable than Amalgamated Financial.

Profitability

This table compares Trinity Capital and Amalgamated Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Capital	50.49%	15.51%	7.00%
Amalgamated Financial	23.05%	14.80%	1.31%

Dividends

Trinity Capital pays an annual dividend of $2.04 per share and has a dividend yield of 12.3%. Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Trinity Capital pays out 93.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amalgamated Financial pays out 16.4% of its earnings in the form of a dividend. Trinity Capital has raised its dividend for 1 consecutive years and Amalgamated Financial has raised its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Trinity Capital and Amalgamated Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Capital	$237.69 million	5.26	$115.60 million	$2.19	7.54
Amalgamated Financial	$453.17 million	2.51	$106.43 million	$3.41	11.15

Trinity Capital has higher earnings, but lower revenue than Amalgamated Financial. Trinity Capital is trading at a lower price-to-earnings ratio than Amalgamated Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Trinity Capital has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

24.6% of Trinity Capital shares are held by institutional investors. Comparatively, 75.9% of Amalgamated Financial shares are held by institutional investors. 5.3% of Trinity Capital shares are held by company insiders. Comparatively, 1.3% of Amalgamated Financial shares 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

Trinity Capital beats Amalgamated Financial on 10 of the 17 factors compared between the two stocks.

About Trinity Capital

Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.