Midland States Bancorp (NASDAQ: MSBI) and Trustmark (NASDAQ:TRMK) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings & Valuation

This table compares Midland States Bancorp and Trustmark’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midland States Bancorp $193.31 million 3.35 $31.54 million $1.46 23.01
Trustmark $604.36 million 3.71 $108.41 million $1.75 18.93

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

Institutional & Insider Ownership

45.6% of Midland States Bancorp shares are held by institutional investors. Comparatively, 62.5% of Trustmark shares are held by institutional investors. 14.9% of Midland States Bancorp shares are held by insiders. Comparatively, 1.4% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Midland States Bancorp 11.90% 10.22% 1.03%
Trustmark 18.56% 8.21% 0.93%

Analyst Recommendations

This is a breakdown of recent recommendations for Midland States Bancorp and Trustmark, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midland States Bancorp 0 0 1 0 3.00
Trustmark 0 5 0 0 2.00

Midland States Bancorp presently has a consensus target price of $42.00, indicating a potential upside of 25.00%. Trustmark has a consensus target price of $35.20, indicating a potential upside of 6.28%. Given Midland States Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Midland States Bancorp is more favorable than Trustmark.

Dividends

Midland States Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.8%. Midland States Bancorp pays out 54.8% of its earnings in the form of a dividend. Trustmark pays out 52.6% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Trustmark beats Midland States Bancorp on 8 of the 15 factors compared between the two stocks.

About Midland States Bancorp

Midland States Bancorp, Inc. is a diversified financial holding company. The Company’s banking subsidiary is Midland States Bank (the Bank). The Company’s principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. The Company’s segments include Banking, which provides a range of financial products and services to consumers and businesses, including loan products; commercial equipment leasing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services, and corporate treasury management services; Commercial Federal Housing Administration (FHA) Origination and Servicing, which provides for the origination and servicing of government sponsored mortgages for multifamily and healthcare facilities, and Other, which includes the operating results of the Company and its wealth management business unit.

About Trustmark

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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