TrustCo Bank Corp NY (NASDAQ: TRST) and Westamerica Bancorporation (NASDAQ:WABC) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
TrustCo Bank Corp NY pays an annual dividend of $0.26 per share and has a dividend yield of 2.8%. Westamerica Bancorporation pays an annual dividend of $1.60 per share and has a dividend yield of 2.6%. TrustCo Bank Corp NY pays out 54.2% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 69.6% 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. TrustCo Bank Corp NY has increased its dividend for 5 consecutive years. TrustCo Bank Corp NY is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
58.7% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 86.0% of Westamerica Bancorporation shares are owned by institutional investors. 0.2% of TrustCo Bank Corp NY shares are owned by insiders. Comparatively, 4.9% of Westamerica Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
TrustCo Bank Corp NY has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for TrustCo Bank Corp NY and Westamerica Bancorporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TrustCo Bank Corp NY||0||2||0||0||2.00|
TrustCo Bank Corp NY currently has a consensus target price of $9.75, indicating a potential upside of 6.56%. Westamerica Bancorporation has a consensus target price of $56.00, indicating a potential downside of 10.43%. Given TrustCo Bank Corp NY’s stronger consensus rating and higher probable upside, equities analysts clearly believe TrustCo Bank Corp NY is more favorable than Westamerica Bancorporation.
Valuation & Earnings
This table compares TrustCo Bank Corp NY and Westamerica Bancorporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TrustCo Bank Corp NY||$180.37 million||4.88||$42.60 million||$0.48||19.06|
|Westamerica Bancorporation||$180.63 million||9.12||$58.85 million||$2.30||27.18|
Westamerica Bancorporation has higher revenue and earnings than TrustCo Bank Corp NY. TrustCo Bank Corp NY is trading at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.
This table compares TrustCo Bank Corp NY and Westamerica Bancorporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TrustCo Bank Corp NY||25.16%||10.51%||0.95%|
Westamerica Bancorporation beats TrustCo Bank Corp NY on 9 of the 16 factors compared between the two stocks.
TrustCo Bank Corp NY Company Profile
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.
Westamerica Bancorporation Company Profile
Westamerica Bancorporation is a bank holding company. The Company provides a range of banking services to individual and corporate customers in Northern and Central California through its subsidiary bank, Westamerica Bank. The communities served are located in Northern and Central California, from Mendocino, Lake and Nevada Counties in the north to Kern County in the south. It provides a range of loans, including commercial loans, commercial real estate loans, construction loans, residential real estate loans, and consumer installment and other loans. It maintains a securities portfolio consisting of securities issued by the United States Treasury, United States Government sponsored entities, agency and non-agency mortgage backed securities (MBS), non-agency commercial MBS, agency residential collateralized mortgage obligations (CMO), non-agency residential CMO, obligations of states and political subdivisions, asset-backed securities, corporate securities and other securities.
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