Financial Review: S & T Bancorp (STBA) and TrustCo Bank Corp NY (TRST)

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

Insider and Institutional Ownership

58.2% of S & T Bancorp shares are owned by institutional investors. Comparatively, 59.6% of TrustCo Bank Corp NY shares are owned by institutional investors. 2.5% of S & T Bancorp shares are owned by insiders. Comparatively, 3.8% of TrustCo Bank Corp NY shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

S & T Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. TrustCo Bank Corp NY pays an annual dividend of $0.26 per share and has a dividend yield of 2.8%. S & T Bancorp pays out 40.5% of its earnings in the form of a dividend. S & T Bancorp has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for S & T Bancorp and TrustCo Bank Corp NY, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
S & T Bancorp 0 3 0 0 2.00
TrustCo Bank Corp NY 0 2 0 0 2.00

S & T Bancorp presently has a consensus price target of $41.75, suggesting a potential downside of 8.04%. TrustCo Bank Corp NY has a consensus price target of $9.25, suggesting a potential upside of 0.00%. Given TrustCo Bank Corp NY’s higher possible upside, analysts plainly believe TrustCo Bank Corp NY is more favorable than S & T Bancorp.

Valuation & Earnings

This table compares S & T Bancorp and TrustCo Bank Corp NY’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
S & T Bancorp $316.10 million 5.03 $72.96 million $2.47 18.38
TrustCo Bank Corp NY $187.33 million 4.77 $43.14 million N/A N/A

S & T Bancorp has higher revenue and earnings than TrustCo Bank Corp NY.

Profitability

This table compares S & T Bancorp and TrustCo Bank Corp NY’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
S & T Bancorp 24.39% 10.41% 1.31%
TrustCo Bank Corp NY 26.07% 11.98% 1.13%

Risk & Volatility

S & T Bancorp has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Summary

TrustCo Bank Corp NY beats S & T Bancorp on 8 of the 14 factors compared between the two stocks.

S & T Bancorp Company Profile

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers. As of December 31, 2017, it operated 57 branches located in 15 counties in Pennsylvania; 3 community banking branches and a leased branch in Ohio; and a loan production office in western New York. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

TrustCo Bank Corp NY Company Profile

TrustCo Bank Corp NY operates as the holding company for Trustco Bank that provides personal and business banking services to individuals, partnerships, and corporations. The company is primarily involved in accepting deposits, and making loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit sharing trusts. Further, it provides retirement planning services; and operates 157 automatic teller machines. As of May 15, 2018, it operated 145 offices in New York, Florida, Massachusetts, New Jersey, and Vermont. TrustCo Bank Corp NY was founded in 1902 and is headquartered in Glenville, New York.

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