Head-To-Head Analysis: Trustmark (NASDAQ:TRMK) versus Plumas Bancorp (NASDAQ:PLBC)

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

Institutional and Insider Ownership

41.7% of Plumas Bancorp shares are owned by institutional investors. Comparatively, 67.6% of Trustmark shares are owned by institutional investors. 7.4% of Plumas Bancorp shares are owned by company insiders. Comparatively, 1.7% of Trustmark shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Plumas Bancorp	27.39%	15.41%	1.80%
Trustmark	20.75%	10.69%	1.20%

Dividends

Plumas Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.1%. Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Plumas Bancorp pays out 26.0% of its earnings in the form of a dividend. Trustmark pays out 25.4% 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. Plumas Bancorp has raised its dividend for 1 consecutive years and Trustmark has raised its dividend for 1 consecutive years. Trustmark is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Plumas Bancorp has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares Plumas Bancorp and Trustmark”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plumas Bancorp	$106.78 million	4.01	$29.62 million	$5.08	12.12
Trustmark	$1.12 billion	2.34	$224.13 million	$3.94	11.48

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Plumas Bancorp and Trustmark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plumas Bancorp	0	0	4	0	3.00
Trustmark	0	4	1	1	2.50

Plumas Bancorp currently has a consensus target price of $66.33, suggesting a potential upside of 7.74%. Trustmark has a consensus target price of $47.38, suggesting a potential upside of 4.72%. Given Plumas Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Plumas Bancorp is more favorable than Trustmark.

Summary

Plumas Bancorp beats Trustmark on 10 of the 17 factors compared between the two stocks.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.

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.