Trustmark (NASDAQ:TRMK – Get Free Report) and United Community Banks (NYSE:UCB – Get Free Report) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Insider & Institutional Ownership
67.6% of Trustmark shares are held by institutional investors. Comparatively, 82.3% of United Community Banks shares are held by institutional investors. 1.7% of Trustmark shares are held by insiders. Comparatively, 0.5% of United Community Banks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Trustmark and United Community Banks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trustmark | 0 | 3 | 3 | 0 | 2.50 |
| United Community Banks | 0 | 4 | 3 | 0 | 2.43 |
Dividends
Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. United Community Banks pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. Trustmark pays out 27.0% of its earnings in the form of a dividend. United Community Banks pays out 38.3% 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.
Profitability
This table compares Trustmark and United Community Banks’ 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 Community Banks | 21.35% | 9.49% | 1.20% |
Risk and Volatility
Trustmark has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, United Community Banks has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Valuation and Earnings
This table compares Trustmark and United Community Banks”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trustmark | $1.12 billion | 2.20 | $224.13 million | $3.71 | 11.34 |
| United Community Banks | $1.54 billion | 2.42 | $328.10 million | $2.61 | 11.92 |
United Community Banks has higher revenue and earnings than Trustmark. Trustmark is trading at a lower price-to-earnings ratio than United Community Banks, indicating that it is currently the more affordable of the two stocks.
Summary
United Community Banks beats Trustmark on 9 of the 15 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 Community Banks
United Community Banks, Inc. operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. The company accepts various deposit products, including checking, savings, money market, and other deposit accounts. It also offers lending services, including real estate, consumer, and commercial loans, to individuals, small businesses, mid-sized commercial businesses, and non-profit organizations, as well as secured and unsecured, and mortgage loans. In addition, the company originate loans partially guaranteed by the SBA and USDA loan programs. Further, it provides wealth management services comprising financial planning, customized portfolio management, and investment advice; trust services to manage fiduciary assets; non-deposit investment products; and insurance products, including life insurance, long-term care insurance, and tax-deferred annuities, as well as invests in residential and commercial mortgage-backed securities, asset-backed securities, the U.S. treasury, the U.S. agency, and municipal obligations. Additionally, the company offers reinsurance on a property insurance contract; insurance agency services; brokerage services; and payment processing, merchant, wire transfer, private banking, and other related financial services. It operates through a network of 171 branches in Florida, Georgia, North Carolina, South Carolina, and Tennessee. United Community Banks, Inc. was founded in 1950 and is headquartered in Blairsville, Georgia.
Receive News & Ratings for Trustmark Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Trustmark and related companies with MarketBeat.com's FREE daily email newsletter.
