Head to Head Contrast: Commonwealth Business Bank (OTCMKTS:CBBI) and Trustmark (NASDAQ:TRMK)

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

Volatility & Risk

Commonwealth Business Bank has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares Commonwealth Business Bank and Trustmark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commonwealth Business Bank	$122.69 million	N/A	$22.43 million	$1.80	6.22
Trustmark	$949.48 million	2.46	$223.01 million	$3.56	10.87

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Commonwealth Business Bank	15.89%	N/A	N/A
Trustmark	19.21%	10.81%	1.18%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Commonwealth Business Bank and Trustmark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commonwealth Business Bank	0	0	0	0	0.00
Trustmark	0	3	3	0	2.50

Trustmark has a consensus target price of $42.25, indicating a potential upside of 9.17%. Given Trustmark’s stronger consensus rating and higher possible upside, analysts clearly believe Trustmark is more favorable than Commonwealth Business Bank.

Dividends

Commonwealth Business Bank pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. Trustmark pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. Commonwealth Business Bank pays out 22.2% of its earnings in the form of a dividend. Trustmark pays out 27.0% 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. Trustmark has increased its dividend for 1 consecutive years. Commonwealth Business Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

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

Summary

Trustmark beats Commonwealth Business Bank on 14 of the 16 factors compared between the two stocks.

About Commonwealth Business Bank

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through full-service and limited-service branches in Southern California, Dallas, Texas and Honolulu, and Hawaii; and loan production offices in the states of Colorado, Georgia, Texas, and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.

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.