Critical Analysis: Trustmark (NASDAQ:TRMK) vs. Landmark Bancorp (NASDAQ:LARK)

Trustmark (NASDAQ:TRMK) and Landmark Bancorp (NASDAQ:LARK) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Volatility and Risk

Trustmark has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Institutional and Insider Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 25.7% of Landmark Bancorp shares are held by institutional investors. 1.5% of Trustmark shares are held by company insiders. Comparatively, 17.2% of Landmark Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Trustmark and Landmark Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$949.48 million	2.43	$223.01 million	$3.64	10.35
Landmark Bancorp	$89.35 million	1.67	$12.24 million	$2.27	11.36

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

Analyst Ratings

This is a summary of recent ratings and target prices for Trustmark and Landmark Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	4	2	0	2.33
Landmark Bancorp	0	0	0	0	0.00

Trustmark presently has a consensus price target of $38.67, indicating a potential upside of 2.65%. Given Trustmark’s stronger consensus rating and higher probable upside, analysts clearly believe Trustmark is more favorable than Landmark Bancorp.

Profitability

This table compares Trustmark and Landmark Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	19.42%	10.12%	1.03%
Landmark Bancorp	14.51%	10.51%	0.89%

Dividends

Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Landmark Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. Trustmark pays out 25.3% of its earnings in the form of a dividend. Landmark Bancorp pays out 35.3% 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.

Summary

Trustmark beats Landmark Bancorp on 12 of the 16 factors compared between the two stocks.

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.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.