Head-To-Head Comparison: OFG Bancorp (NYSE:OFG) and TrustCo Bank Corp NY (NASDAQ:TRST)

OFG Bancorp (NYSE:OFG) and TrustCo Bank Corp NY (NASDAQ:TRST) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares OFG Bancorp and TrustCo Bank Corp NY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	22.72%	15.21%	1.69%
TrustCo Bank Corp NY	21.96%	8.86%	0.96%

Dividends

OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.3%. TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 3.3%. OFG Bancorp pays out 30.6% of its earnings in the form of a dividend. TrustCo Bank Corp NY pays out 46.8% 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. OFG Bancorp has increased its dividend for 5 consecutive years.

Volatility & Risk

OFG Bancorp has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for OFG Bancorp and TrustCo Bank Corp NY, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	4	3	0	2.43
TrustCo Bank Corp NY	0	0	1	0	3.00

OFG Bancorp currently has a consensus target price of $45.83, indicating a potential upside of 7.36%. Given OFG Bancorp’s higher possible upside, analysts plainly believe OFG Bancorp is more favorable than TrustCo Bank Corp NY.

Earnings & Valuation

This table compares OFG Bancorp and TrustCo Bank Corp NY”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$902.28 million	2.01	$205.10 million	$4.58	9.32
TrustCo Bank Corp NY	$278.36 million	2.91	$61.14 million	$3.25	14.22

OFG Bancorp has higher revenue and earnings than TrustCo Bank Corp NY. OFG Bancorp is trading at a lower price-to-earnings ratio than TrustCo Bank Corp NY, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.7% of OFG Bancorp shares are owned by institutional investors. Comparatively, 68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. 1.2% of OFG Bancorp shares are owned by insiders. Comparatively, 2.9% of TrustCo Bank Corp NY shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

OFG Bancorp beats TrustCo Bank Corp NY on 12 of the 17 factors compared between the two stocks.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.