Reviewing National Bank (NYSE:NBHC) & Trustmark (NASDAQ:TRMK)

National Bank (NYSE:NBHC) and Trustmark (NASDAQ:TRMK) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank	$436.32 million	4.77	$109.57 million	$2.68	17.33
Trustmark	$1.12 billion	2.45	$224.13 million	$3.78	12.40

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

Volatility & Risk

National Bank has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Insider & Institutional Ownership

92.7% of National Bank shares are held by institutional investors. Comparatively, 67.6% of Trustmark shares are held by institutional investors. 6.8% of National Bank shares are held by insiders. Comparatively, 1.7% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Bank	17.14%	8.72%	1.18%
Trustmark	20.12%	10.74%	1.20%

Analyst Ratings

This is a breakdown of current recommendations and price targets for National Bank and Trustmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank	0	2	5	0	2.71
Trustmark	0	5	2	0	2.29

National Bank currently has a consensus price target of $46.20, suggesting a potential downside of 0.53%. Trustmark has a consensus price target of $44.75, suggesting a potential downside of 4.54%. Given National Bank’s stronger consensus rating and higher possible upside, equities analysts plainly believe National Bank is more favorable than Trustmark.

Dividends

National Bank pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. National Bank pays out 47.8% of its earnings in the form of a dividend. Trustmark pays out 26.5% 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. National Bank has raised its dividend for 10 consecutive years and Trustmark has raised its dividend for 1 consecutive years. National Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

National Bank beats Trustmark on 10 of the 17 factors compared between the two stocks.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

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.