Head-To-Head Contrast: TrustCo Bank Corp NY (NASDAQ:TRST) versus Eagle Bancorp (NASDAQ:EGBN)

TrustCo Bank Corp NY (NASDAQ:TRST) and Eagle Bancorp (NASDAQ:EGBN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares TrustCo Bank Corp NY and Eagle Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	22.42%	9.21%	0.98%
Eagle Bancorp	-18.65%	-10.03%	-1.10%

Insider and Institutional Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 78.0% of Eagle Bancorp shares are owned by institutional investors. 3.4% of TrustCo Bank Corp NY shares are owned by company insiders. Comparatively, 3.1% of Eagle Bancorp shares are owned by company 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.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 2.8%. Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. TrustCo Bank Corp NY pays out 44.6% of its earnings in the form of a dividend. Eagle Bancorp pays out -1.1% 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.

Valuation and Earnings

This table compares TrustCo Bank Corp NY and Eagle Bancorp”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	$278.36 million	3.43	$61.14 million	$3.41	16.01
Eagle Bancorp	$634.26 million	1.29	-$138.05 million	($3.79)	-7.09

TrustCo Bank Corp NY has higher earnings, but lower revenue than Eagle Bancorp. Eagle Bancorp is trading at a lower price-to-earnings ratio than TrustCo Bank Corp NY, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

TrustCo Bank Corp NY has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for TrustCo Bank Corp NY and Eagle Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	1	0	3.00
Eagle Bancorp	1	2	0	1	2.25

Eagle Bancorp has a consensus target price of $29.00, suggesting a potential upside of 7.97%. Given Eagle Bancorp’s higher probable upside, analysts clearly believe Eagle Bancorp is more favorable than TrustCo Bank Corp NY.

Summary

TrustCo Bank Corp NY beats Eagle Bancorp on 11 of the 17 factors compared between the two stocks.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.

About Eagle Bancorp

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.