United Bancorporation of Alabama (OTCMKTS:UBAB) and Trustmark (NASDAQ:TRMK) Head-To-Head Analysis

Trustmark (NASDAQ:TRMK) and United Bancorporation of Alabama (OTCMKTS:UBAB) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

This table compares Trustmark and United Bancorporation of Alabama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	19.95%	10.77%	1.20%
United Bancorporation of Alabama	21.11%	12.60%	1.34%

Insider and Institutional Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 5.5% of United Bancorporation of Alabama shares are held by institutional investors. 1.5% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Trustmark has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, United Bancorporation of Alabama has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Trustmark and United Bancorporation of Alabama, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	3	2	0	2.40
United Bancorporation of Alabama	0	1	0	0	2.00

Trustmark presently has a consensus price target of $43.83, suggesting a potential downside of 1.65%. Given Trustmark’s stronger consensus rating and higher probable upside, research analysts plainly believe Trustmark is more favorable than United Bancorporation of Alabama.

Valuation and Earnings

This table compares Trustmark and United Bancorporation of Alabama”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$1.12 billion	2.38	$224.13 million	$3.71	12.01
United Bancorporation of Alabama	$89.83 million	1.77	$19.67 million	$5.22	9.96

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

Dividends

Trustmark pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. United Bancorporation of Alabama pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Trustmark pays out 25.9% of its earnings in the form of a dividend. United Bancorporation of Alabama pays out 26.8% 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. Trustmark has increased its dividend for 1 consecutive years.

Summary

Trustmark beats United Bancorporation of Alabama on 12 of the 17 factors compared between the two stocks.

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.

About United Bancorporation of Alabama

United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.