Head-To-Head Comparison: Touchstone Bankshares (OTCMKTS:TSBA) and Renasant (NASDAQ:RNST)

Renasant (NASDAQ:RNST) and Touchstone Bankshares (OTCMKTS:TSBA) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares Renasant and Touchstone Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Renasant	$874.43 million	3.74	$195.46 million	$1.99	17.29
Touchstone Bankshares	N/A	N/A	$1.61 million	$0.65	21.92

Renasant has higher revenue and earnings than Touchstone Bankshares. Renasant is trading at a lower price-to-earnings ratio than Touchstone Bankshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Renasant and Touchstone Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renasant	0	0	6	1	3.14
Touchstone Bankshares	0	0	0	0	0.00

Renasant presently has a consensus price target of $43.17, indicating a potential upside of 25.43%. Given Renasant’s stronger consensus rating and higher probable upside, equities analysts plainly believe Renasant is more favorable than Touchstone Bankshares.

Profitability

This table compares Renasant and Touchstone Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Renasant	17.91%	6.58%	0.93%
Touchstone Bankshares	N/A	N/A	N/A

Institutional & Insider Ownership

77.3% of Renasant shares are owned by institutional investors. Comparatively, 0.4% of Touchstone Bankshares shares are owned by institutional investors. 2.8% of Renasant shares are owned by insiders. Comparatively, 10.4% of Touchstone Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Renasant pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Touchstone Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Renasant pays out 46.2% of its earnings in the form of a dividend. Touchstone Bankshares pays out 49.2% 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. Renasant is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Renasant has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Touchstone Bankshares has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Summary

Renasant beats Touchstone Bankshares on 14 of the 16 factors compared between the two stocks.

About Renasant

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. The company operates through Community Banks, Insurance, and Wealth Management segments. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and factoring equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate1-4 family mortgage; real estatecommercial mortgage; real estateconstruction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; administrative and compliance services; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

About Touchstone Bankshares

Touchstone Bankshares, Inc. operates as the bank holding company for Touchstone Bank that provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also provides home mortgage, professional mortgage, home equity, auto, and personal term loans; personal lines of credit; and business loans comprising commercial real estate, operating capital, business term, and construction loans, as well as business lines of credit. In addition, the company offers credit and debit cards; and digital banking, treasury, wealth management, and financial planning services. It has branches in northern North Carolina and south-central Virginia. The company was founded in 1906 and is headquartered in Prince George, Virginia.