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

Profitability

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

Net Margins Return on Equity Return on Assets
Eagle Bancorp Montana 12.06% 8.36% 0.74%
TrustCo Bank Corp NY 24.58% 10.24% 0.92%

Earnings & Valuation

This table compares Eagle Bancorp Montana and TrustCo Bank Corp NY’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Bancorp Montana $36.88 million 1.94 $4.95 million $1.30 14.46
TrustCo Bank Corp NY $165.49 million 5.31 $44.21 million $0.46 19.89

TrustCo Bank Corp NY has higher revenue and earnings than Eagle Bancorp Montana. Eagle Bancorp Montana 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.

Volatility and Risk

Eagle Bancorp Montana has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Dividends

Eagle Bancorp Montana pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. TrustCo Bank Corp NY pays an annual dividend of $0.26 per share and has a dividend yield of 2.8%. Eagle Bancorp Montana pays out 27.7% of its earnings in the form of a dividend. TrustCo Bank Corp NY pays out 56.5% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Eagle Bancorp Montana and TrustCo Bank Corp NY, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bancorp Montana 0 0 0 0 N/A
TrustCo Bank Corp NY 0 0 0 0 N/A

Institutional and Insider Ownership

31.5% of Eagle Bancorp Montana shares are held by institutional investors. Comparatively, 57.8% of TrustCo Bank Corp NY shares are held by institutional investors. 9.9% of Eagle Bancorp Montana shares are held by insiders. Comparatively, 0.2% of TrustCo Bank Corp NY shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

TrustCo Bank Corp NY beats Eagle Bancorp Montana on 10 of the 13 factors compared between the two stocks.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. is the bank holding company for Opportunity Bank of Montana (the Bank). The Bank is a Montana-chartered commercial bank. The Bank has equity investments in Certified Development Entities, which have received allocations of New Markets Tax Credits (NMTC). The Company offers wealth management services at its locations through financial advisors employed by the Bank. The Bank originates residential mortgages (one- to four-family) and commercial real estate loans, real estate construction loans, home equity loans, consumer loans and commercial loans. The Bank offers a range of deposit accounts, which include certificates of deposit accounts ranging in terms from 90 days to 5 years, as well as, checking, savings and money market accounts. Individual retirement accounts (IRAs) are included in certificates of deposit.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a savings and loan holding company. The Company’s principal subsidiary is Trustco Bank (the Bank). The Bank is a federal savings bank engaged in providing general banking services to individuals, partnerships and corporations. It operates through community banking segment. The Bank’s business consists of accepting deposits and making loans and investments. The Bank provides both personal and business banking services. The Bank’s subsidiary, Trustco Realty Corp., is a real estate investment trust (REIT) formed to acquire, hold and manage real estate mortgage assets, including residential mortgage loans and mortgage backed securities. The Bank’s trust department operates under the name, Trustco Financial Services, and serves as executor of estates and trustee of personal trusts, provides asset and wealth management services, and provides estate planning and related advice, provides custodial services.

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