Select Bancorp (NASDAQ: SLCT) and Trustmark Corporation (NASDAQ:TRMK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Select Bancorp and Trustmark Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Bancorp 0 1 0 0 2.00
Trustmark Corporation 0 4 0 0 2.00

Select Bancorp currently has a consensus price target of $13.00, suggesting a potential upside of 10.54%. Trustmark Corporation has a consensus price target of $33.50, suggesting a potential upside of 1.76%. Given Select Bancorp’s higher probable upside, analysts plainly believe Select Bancorp is more favorable than Trustmark Corporation.

Insider & Institutional Ownership

16.8% of Select Bancorp shares are held by institutional investors. Comparatively, 62.4% of Trustmark Corporation shares are held by institutional investors. 14.2% of Select Bancorp shares are held by insiders. Comparatively, 1.4% of Trustmark Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Trustmark Corporation pays an annual dividend of $0.92 per share and has a dividend yield of 2.8%. Select Bancorp does not pay a dividend. Trustmark Corporation pays out 54.1% of its earnings in the form of a dividend.

Profitability

This table compares Select Bancorp and Trustmark Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Bancorp 17.31% 6.44% 0.78%
Trustmark Corporation 18.35% 8.04% 0.92%

Earnings and Valuation

This table compares Select Bancorp and Trustmark Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Select Bancorp $33.23 million 4.13 $6.76 million $0.58 20.28
Trustmark Corporation $569.20 million 3.92 $115.16 million $1.70 19.36

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

Volatility & Risk

Select Bancorp has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Trustmark Corporation has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Trustmark Corporation beats Select Bancorp on 9 of the 14 factors compared between the two stocks.

About Select Bancorp

Select Bancorp, Inc. is the bank holding company for Select Bank & Trust Company (the Bank). The Bank is a commercial bank. The Bank provides commercial and retail financial services to customers located in its market areas. The Bank offers a range of banking services, including checking and savings accounts, commercial, consumer, mortgage and personal loans, and other associated financial services. The Bank’s lending activities are oriented to the consumer/retail customer, as well as to the small-to-medium sized businesses located in central and eastern North Carolina. The Bank offers commercial, consumer and mortgage lending products. It originates construction loans for the purpose of acquisition, development and construction of both residential and commercial properties (ADC loans). The Bank’s deposits include savings, negotiable order of withdrawal (NOW) account and money market deposits, time deposits and non-interest-bearing deposits.

About Trustmark Corporation

Trustmark Corporation is a bank holding company. The Company’s principal subsidiary is Trustmark National Bank (TNB). Through TNB and its subsidiaries, the Company operates as a financial services company providing banking and other financial solutions. It operates through three segments: General Banking, Wealth Management and Insurance. The General Banking Division is responsible for all traditional banking products and services, including loans and deposits. The Wealth Management Division provides customized solutions for customers by integrating financial services with traditional banking products and services, such as money management, full-service brokerage, financial planning, personal and institutional trust and retirement services. Through Fisher Brown Bottrell Insurance, Inc. (FBBI), a subsidiary of TNB, the Insurance Division provides a range of retail insurance products, including commercial risk management products, bonding, group benefits and personal lines coverage.

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