TrustCo Bank Corp NY (NASDAQ:TRST) & Mvb Financial (NASDAQ:MVBF) Critical Comparison

TrustCo Bank Corp NY (NASDAQ:TRST) and Mvb Financial (NASDAQ:MVBF) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Risk & Volatility

TrustCo Bank Corp NY has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Mvb Financial has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 52.7% of Mvb Financial shares are owned by institutional investors. 3.4% of TrustCo Bank Corp NY shares are owned by insiders. Comparatively, 9.9% of Mvb Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers 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 3.1%. Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. TrustCo Bank Corp NY pays out 44.6% of its earnings in the form of a dividend. Mvb Financial pays out 31.2% 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for TrustCo Bank Corp NY and Mvb Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	1	0	3.00
Mvb Financial	0	2	4	0	2.67

Mvb Financial has a consensus price target of $31.25, suggesting a potential upside of 19.92%. Given Mvb Financial’s higher possible upside, analysts clearly believe Mvb Financial is more favorable than TrustCo Bank Corp NY.

Earnings & Valuation

This table compares TrustCo Bank Corp NY and Mvb Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$192.12 million	4.47	$61.14 million	$3.41	14.39
Mvb Financial	$200.74 million	1.67	$26.94 million	$2.18	11.95

TrustCo Bank Corp NY has higher earnings, but lower revenue than Mvb Financial. Mvb Financial 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.

Profitability

This table compares TrustCo Bank Corp NY and Mvb Financial’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%
Mvb Financial	13.98%	2.54%	0.25%

Summary

TrustCo Bank Corp NY beats Mvb Financial on 10 of the 16 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 Mvb Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.