First NBC Bank (OTCMKTS:FNBCQ) versus Trustmark (NASDAQ:TRMK) Critical Comparison

First NBC Bank (OTCMKTS:FNBCQ) and Trustmark (NASDAQ:TRMK) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for First NBC Bank and Trustmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First NBC Bank	0	0	0	0	0.00
Trustmark	0	3	3	0	2.50

Trustmark has a consensus target price of $42.25, suggesting a potential upside of 9.17%. Given Trustmark’s stronger consensus rating and higher probable upside, analysts plainly believe Trustmark is more favorable than First NBC Bank.

Profitability

This table compares First NBC Bank and Trustmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First NBC Bank	N/A	N/A	N/A
Trustmark	19.21%	10.81%	1.18%

Earnings & Valuation

This table compares First NBC Bank and Trustmark”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First NBC Bank	N/A	N/A	N/A	N/A	N/A
Trustmark	$949.48 million	2.46	$223.01 million	$3.56	10.87

Trustmark has higher revenue and earnings than First NBC Bank.

Institutional & Insider Ownership

67.6% of Trustmark shares are held by institutional investors. 8.4% of First NBC Bank shares are held by company insiders. Comparatively, 1.5% of Trustmark shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Trustmark beats First NBC Bank on 8 of the 9 factors compared between the two stocks.

About First NBC Bank

First NBC Bank Holding Company operates as the bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals. The company's deposit products include savings deposits, money market accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises construction, commercial and consumer real estate, commercial and industrial, and consumer loans. The company also offers trust services, credit cards, and wire transfers. As of August 15, 2016, it operated 39 full service banking offices in New Orleans metropolitan area, Mississippi Gulf Coast, and the Florida panhandle. First NBC Bank Holding Company was founded in 2006 and is headquartered in New Orleans, Louisiana. On May 11, 2017, First NBC Bank Holding Company filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Eastern District of Louisiana. First NBC Bank Holding Company operates as a subsidiary of First NMTC 2, LLC.

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.