Contrasting Trustmark (NASDAQ:TRMK) and German American Bancorp (NASDAQ:GABC)

Trustmark (NASDAQ:TRMK) and German American Bancorp (NASDAQ:GABC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Insider and Institutional Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 46.9% of German American Bancorp shares are held by institutional investors. 1.7% of Trustmark shares are held by insiders. Comparatively, 3.2% of German American Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. Trustmark pays out 25.0% of its earnings in the form of a dividend. German American Bancorp pays out 32.0% 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 has increased its dividend for 1 consecutive years and German American Bancorp has increased its dividend for 13 consecutive years. German American Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trustmark	20.90%	10.78%	1.20%
German American Bancorp	28.78%	12.33%	1.74%

Volatility & Risk

Trustmark has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, German American Bancorp has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares Trustmark and German American Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$1.12 billion	2.31	$224.13 million	$4.00	11.16
German American Bancorp	$394.24 million	4.77	$112.64 million	$3.88	12.91

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Trustmark and German American Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	4	1	1	2.50
German American Bancorp	0	2	2	2	3.00

Trustmark currently has a consensus price target of $47.38, suggesting a potential upside of 6.13%. German American Bancorp has a consensus price target of $53.33, suggesting a potential upside of 6.50%. Given German American Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe German American Bancorp is more favorable than Trustmark.

Summary

German American Bancorp beats Trustmark on 12 of the 18 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 German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.