Critical Survey: WSFS Financial (WSFS) vs. Trustmark (TRMK)

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WSFS Financial (NASDAQ: TRMK) 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 profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Dividends

WSFS Financial pays an annual dividend of $0.44 per share and has a dividend yield of 0.9%. Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. WSFS Financial pays out 17.2% of its earnings in the form of a dividend. Trustmark pays out 47.9% 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. WSFS Financial has raised its dividend for 4 consecutive years.

Earnings & Valuation

This table compares WSFS 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
WSFS Financial $379.37 million 4.01 $50.24 million $2.56 18.71
Trustmark $654.24 million 3.58 $105.63 million $1.92 18.02

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

Profitability

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

Net Margins Return on Equity Return on Assets
WSFS Financial 20.57% 13.02% 1.39%
Trustmark 19.01% 9.13% 1.05%

Volatility and Risk

WSFS Financial has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

78.6% of WSFS Financial shares are held by institutional investors. Comparatively, 62.1% of Trustmark shares are held by institutional investors. 5.7% of WSFS Financial shares are held by company insiders. Comparatively, 1.5% of Trustmark shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for WSFS Financial and Trustmark, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSFS Financial 0 2 4 0 2.67
Trustmark 0 6 0 0 2.00

WSFS Financial currently has a consensus price target of $59.20, indicating a potential upside of 23.59%. Trustmark has a consensus price target of $34.33, indicating a potential downside of 0.77%. Given WSFS Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe WSFS Financial is more favorable than Trustmark.

Summary

WSFS Financial beats Trustmark on 14 of the 17 factors compared between the two stocks.

About WSFS Financial

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. The company offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as jumbo certificates of deposit. It also provides a range of loans, which comprise residential real estate loans; commercial real estate mortgage loans; commercial construction loans to developers; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion, and other business purposes; and consumer credit products, such as home improvement, automobile, and other secured and unsecured personal installment loans, as well as home equity lines and unsecured lines of credit. In addition, the company offers cash management, trust, and wealth management services. Further, it markets various third-party investment and insurance products, such as single-premium annuities, whole life policies, and securities; and provides investment advisory services to high net worth individuals and institutions. Additionally, the company offers ATM vault cash and other related services; and online reporting and ATM cash management, predictive cash ordering, armored carrier management, and ATM processing and equipment sales and deposit safe cash logistics services. As of February 27, 2018, it operated 76 offices, including 46 in Delaware, 28 in Pennsylvania, 1 in Virginia, and 1 in Nevada. WSFS Financial Corporation was founded in 1832 and is headquartered in Wilmington, Delaware.

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 offers checking, savings, and money market accounts; individual retirement accounts; certificates of deposits; 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. It also provides mortgage banking services, including construction financing, production of conventional and government insured mortgages, and secondary marketing and mortgage servicing; overdraft facilities; and treasury management services. In addition, the company offers business insurance products and services for medical professionals, construction, manufacturing, hospitality, real estate, and group life and health plans; life and health insurance, and personal line policies for individual customers; and an intermediary vehicle for the provision of loans or investments in low-income communities. Further, it engages in the administration of personal trusts and estates; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and provision of corporate trust and institutional custody, securities brokerage, financial and estate planning, retirement plan, investment management, and commercial risk management services. As of December 31, 2017, the company operated 178 full-service branches and 20 limited-service branches; and 180 ATMs at on premise locations and 66 ATMs at off-premise sites. It also has six mortgage banking off-site locations; one wealth management off-site location; and five insurance off-site locations. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.

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