TrustCo Bank Corp NY (NASDAQ:TRST) vs. RBB Bancorp (NASDAQ:RBB) Financial Comparison

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	0	1	4.00
RBB Bancorp	0	3	2	0	2.40

RBB Bancorp has a consensus price target of $29.33, suggesting a potential upside of 12.82%. Given RBB Bancorp’s higher possible upside, analysts plainly believe RBB Bancorp is more favorable than TrustCo Bank Corp NY.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. TrustCo Bank Corp NY pays out 42.6% of its earnings in the form of a dividend. RBB Bancorp pays out 24.8% 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.

Institutional & Insider Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are owned by institutional investors. 3.4% of TrustCo Bank Corp NY shares are owned by company insiders. Comparatively, 6.8% of RBB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	22.83%	10.00%	1.02%
RBB Bancorp	18.02%	8.33%	1.05%

Valuation and Earnings

This table compares TrustCo Bank Corp NY and RBB Bancorp”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	$278.36 million	3.44	$61.14 million	$3.76	15.40
RBB Bancorp	$238.00 million	1.83	$31.95 million	$2.58	10.08

TrustCo Bank Corp NY has higher revenue and earnings than RBB Bancorp. RBB 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.

Volatility and Risk

TrustCo Bank Corp NY has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Summary

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

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a bank holding company whose principal subsidiary is Trustco Bank. Founded in 1902 as Schenectady Trust Company, the bank has grown from its roots in upstate New York into a regional community banking institution. Trustco Bank offers personal and business deposit accounts, including checking, savings and certificates of deposit, along with residential mortgages, home equity financing and other consumer and commercial loans. Its services also include online and mobile banking and trust and investment services.

About RBB Bancorp

RBB Bancorp is a bank holding company whose principal subsidiary, Royal Business Bank, provides commercial banking services to businesses and individuals. The bank offers deposit accounts, commercial and small-business loans, commercial real estate financing, residential mortgage lending, and treasury management services. Founded in 2008, Royal Business Bank has a particular focus on serving Asian-American communities and small and midsize businesses. Its operations serve customers in California, Nevada, Hawaii, and New York.