Trustmark (NASDAQ:TRMK – Get Free Report) and BayFirst Financial (NASDAQ:BAFN – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Institutional and Insider Ownership
67.6% of Trustmark shares are owned by institutional investors. Comparatively, 16.9% of BayFirst Financial shares are owned by institutional investors. 1.7% of Trustmark shares are owned by company insiders. Comparatively, 18.8% of BayFirst Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Trustmark and BayFirst Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trustmark | 20.12% | 10.74% | 1.20% |
| BayFirst Financial | -29.20% | -37.66% | -2.21% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trustmark | 0 | 5 | 2 | 0 | 2.29 |
| BayFirst Financial | 1 | 0 | 0 | 0 | 1.00 |
Trustmark presently has a consensus target price of $44.75, suggesting a potential upside of 1.36%. Given Trustmark’s stronger consensus rating and higher possible upside, analysts clearly believe Trustmark is more favorable than BayFirst Financial.
Valuation and Earnings
This table compares Trustmark and BayFirst Financial”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trustmark | $1.12 billion | 2.30 | $224.13 million | $3.78 | 11.68 |
| BayFirst Financial | $104.19 million | 0.21 | -$22.94 million | ($7.22) | -0.75 |
Trustmark has higher revenue and earnings than BayFirst Financial. BayFirst Financial is trading at a lower price-to-earnings ratio than Trustmark, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Trustmark has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, BayFirst Financial has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Summary
Trustmark beats BayFirst Financial on 13 of the 14 factors compared between the two stocks.
About Trustmark
Trustmark Corporation operates as the bank holding company for Trustmark National Bank that provides banking and other financial solutions to individuals and corporate institutions in the United States. The company operates through three segments: General Banking, Wealth Management, and Insurance. It offers checking, savings, and money market accounts; certificates of deposits and individual retirement accounts; financing for commercial and industrial projects, income-producing commercial real estate, owner-occupied real estate, and construction and land development; and installment and real estate loans, and lines of credit, as well as treasury management services. The company also provides mortgage banking services, including construction financing, production of conventional and government-insured mortgages, and secondary marketing and mortgage servicing. In addition, it provides wealth management and trust services, such as administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, and investment management services. Further, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; and life and health insurance, and personal line policies for individual customers. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.
About BayFirst Financial
BayFirst Financial Corp. operates as the bank holding company for BayFirst National Bank that provides community banking services for businesses and individuals. The company offers checking, savings, NOW, and money market deposit accounts, as well as certificates of deposit and individual retirement account; and safety deposit boxes. It also provides commercial real estate mortgages; construction and development, working capital, and business loans; auto, boat, and recreational vehicle loans; and residential mortgages, personal lines of credit, and home equity lines of credit. In addition, the company offers mobile and online banking, treasury management, wire transfers, cash management, merchant processing, remote deposit capture, night depositor, online bill payment, courier, retail investment, ACH originations, and other services. It operates full-service banking centers in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, Belleair Bluffs, and Bradenton, Florida. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.
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