Trustmark (NASDAQ:TRMK) and Zions Bancorporation NA (NASDAQ:ZION) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Volatility & Risk
Trustmark has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Zions Bancorporation NA has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
This is a summary of current ratings for Trustmark and Zions Bancorporation NA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zions Bancorporation NA||0||6||12||0||2.67|
Trustmark currently has a consensus target price of $33.25, indicating a potential upside of 1.43%. Zions Bancorporation NA has a consensus target price of $57.56, indicating a potential upside of 17.36%. Given Zions Bancorporation NA’s stronger consensus rating and higher probable upside, analysts clearly believe Zions Bancorporation NA is more favorable than Trustmark.
Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.8%. Zions Bancorporation NA pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Trustmark pays out 41.6% of its earnings in the form of a dividend. Zions Bancorporation NA pays out 29.4% 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. Zions Bancorporation NA has raised its dividend for 6 consecutive years.
Earnings and Valuation
This table compares Trustmark and Zions Bancorporation NA’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Trustmark||$683.25 million||3.24||$149.58 million||$2.21||14.83|
|Zions Bancorporation NA||$3.03 billion||3.11||$884.00 million||$4.08||12.02|
Zions Bancorporation NA has higher revenue and earnings than Trustmark. Zions Bancorporation NA is trading at a lower price-to-earnings ratio than Trustmark, indicating that it is currently the more affordable of the two stocks.
This table compares Trustmark and Zions Bancorporation NA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zions Bancorporation NA||29.14%||12.57%||1.32%|
Insider and Institutional Ownership
71.3% of Trustmark shares are owned by institutional investors. Comparatively, 94.0% of Zions Bancorporation NA shares are owned by institutional investors. 1.5% of Trustmark shares are owned by insiders. Comparatively, 1.6% of Zions Bancorporation NA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Zions Bancorporation NA beats Trustmark on 14 of the 17 factors compared between the two stocks.
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.
About Zions Bancorporation NA
Zions Bancorporation, National Association provides various banking and related services primarily in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services, such as small and medium-sized business and corporate banking; commercial and residential development, construction, and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending services; trust and wealth management services; capital markets services, including municipal finance advisory and underwriting; and investment services. It also offers personal banking services to individuals, including home mortgages, bankcards, other installment loans, home equity lines of credit, checking accounts, savings accounts, certificates of deposit of various types and maturities, trust services, safe deposit facilities, and Internet and mobile banking services. In addition, the company provides self-directed brokerage services; and small business administration lending and secondary market agricultural real estate mortgage loans; and bond transfer, stock transfer, and escrow services for corporate customers. As of December 31, 2017, it operated 433 domestic branches. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is based in Salt Lake City, Utah.
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