Head-To-Head Analysis: South Plains Financial (NASDAQ:SPFI) vs. Trustmark (NASDAQ:TRMK)

South Plains Financial (NASDAQ:SPFI) and Trustmark (NASDAQ:TRMK) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

This table compares South Plains Financial and Trustmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South Plains Financial	18.59%	12.36%	1.26%
Trustmark	19.21%	10.81%	1.18%

Risk and Volatility

South Plains Financial has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

55.0% of South Plains Financial shares are owned by institutional investors. Comparatively, 67.6% of Trustmark shares are owned by institutional investors. 25.4% of South Plains Financial shares are owned by company insiders. Comparatively, 1.5% of Trustmark shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

South Plains Financial pays an annual dividend of $0.64 per share and has a dividend yield of 1.7%. Trustmark pays an annual dividend of $0.96 per share and has a dividend yield of 2.6%. South Plains Financial pays out 20.0% of its earnings in the form of a dividend. Trustmark 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. South Plains Financial has raised its dividend for 5 consecutive years and Trustmark has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares South Plains Financial and Trustmark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Plains Financial	$288.97 million	2.07	$49.72 million	$3.20	11.51
Trustmark	$678.35 million	3.29	$223.01 million	$3.56	10.36

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

Analyst Ratings

This is a breakdown of current ratings for South Plains Financial and Trustmark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Plains Financial	0	0	3	0	3.00
Trustmark	0	3	2	0	2.40

South Plains Financial presently has a consensus target price of $44.6667, indicating a potential upside of 21.25%. Trustmark has a consensus target price of $41.00, indicating a potential upside of 11.14%. Given South Plains Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe South Plains Financial is more favorable than Trustmark.

Summary

South Plains Financial beats Trustmark on 10 of the 17 factors compared between the two stocks.

About South Plains Financial

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.

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.