TrustCo Bank Corp NY (NASDAQ: TRST) and Fidelity Southern Corporation (NASDAQ:LION) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
TrustCo Bank Corp NY pays an annual dividend of $0.26 per share and has a dividend yield of 3.4%. Fidelity Southern Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. TrustCo Bank Corp NY pays out 56.5% of its earnings in the form of a dividend. Fidelity Southern Corporation pays out 27.0% 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.
Volatility & Risk
TrustCo Bank Corp NY has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Fidelity Southern Corporation has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for TrustCo Bank Corp NY and Fidelity Southern Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TrustCo Bank Corp NY||0||0||0||0||N/A|
|Fidelity Southern Corporation||0||2||1||0||2.33|
Fidelity Southern Corporation has a consensus target price of $24.50, indicating a potential upside of 15.40%. Given Fidelity Southern Corporation’s higher probable upside, analysts clearly believe Fidelity Southern Corporation is more favorable than TrustCo Bank Corp NY.
This table compares TrustCo Bank Corp NY and Fidelity Southern Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TrustCo Bank Corp NY||24.58%||10.24%||0.92%|
|Fidelity Southern Corporation||14.95%||12.87%||1.05%|
Institutional & Insider Ownership
57.2% of TrustCo Bank Corp NY shares are held by institutional investors. Comparatively, 67.9% of Fidelity Southern Corporation shares are held by institutional investors. 0.2% of TrustCo Bank Corp NY shares are held by company insiders. Comparatively, 18.8% of Fidelity Southern Corporation shares are held by company 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.
Valuation & Earnings
This table compares TrustCo Bank Corp NY and Fidelity Southern Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TrustCo Bank Corp NY||$165.49 million||4.50||$44.21 million||$0.46||16.85|
|Fidelity Southern Corporation||$269.22 million||2.11||$47.53 million||$1.78||11.93|
Fidelity Southern Corporation has higher revenue and earnings than TrustCo Bank Corp NY. Fidelity Southern Corporation 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.
Fidelity Southern Corporation beats TrustCo Bank Corp NY on 11 of the 15 factors compared between the two stocks.
TrustCo Bank Corp NY Company Profile
TrustCo Bank Corp NY is a savings and loan holding company. The Company’s principal subsidiary is Trustco Bank (the Bank). The Bank is a federal savings bank engaged in providing general banking services to individuals, partnerships and corporations. It operates through community banking segment. The Bank’s business consists of accepting deposits and making loans and investments. The Bank provides both personal and business banking services. The Bank’s subsidiary, Trustco Realty Corp., is a real estate investment trust (REIT) formed to acquire, hold and manage real estate mortgage assets, including residential mortgage loans and mortgage backed securities. The Bank’s trust department operates under the name, Trustco Financial Services, and serves as executor of estates and trustee of personal trusts, provides asset and wealth management services, and provides estate planning and related advice, provides custodial services.
Fidelity Southern Corporation Company Profile
Fidelity Southern Corporation is a bank holding company. The Company conducts its operations through its subsidiary bank, Fidelity Bank, which is a state chartered bank (the Bank). The Company provides an array of financial products and services for business and retail customers in the metropolitan Atlanta and Jacksonville, Orlando and Sarasota-Bradenton, Florida markets. The Company provides mortgage loans, indirect automobile loans and Small Business Administration (SBA) loans throughout the South and parts of the Midwest. It delivers its products and services through a network of offices located in Southern states. As of December 31, 2016, it owned 55 and leased 10 retail bank branches and it leased 27 loan production offices. The Company is primarily engaged in attracting deposits from individuals and businesses and using these deposits and borrowed funds to originate commercial, residential mortgage, construction and installment loans.
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