Truxton (OTCMKTS:TRUX) versus Stock Yards Bancorp (NASDAQ:SYBT) Financial Analysis

Truxton (OTCMKTS:TRUX) and Stock Yards Bancorp (NASDAQ:SYBT) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

0.3% of Truxton shares are owned by institutional investors. Comparatively, 56.5% of Stock Yards Bancorp shares are owned by institutional investors. 3.4% of Stock Yards Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Truxton and Stock Yards Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truxton	$78.37 million	3.00	$18.41 million	$7.28	11.20
Stock Yards Bancorp	$508.11 million	3.89	$114.54 million	$4.35	15.43

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

Dividends

Truxton pays an annual dividend of $2.00 per share and has a dividend yield of 2.5%. Stock Yards Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.9%. Truxton pays out 27.5% of its earnings in the form of a dividend. Stock Yards Bancorp 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. Stock Yards Bancorp has increased its dividend for 15 consecutive years. Truxton is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Truxton has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Stock Yards Bancorp has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Truxton and Stock Yards Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truxton	0	0	0	0	0.00
Stock Yards Bancorp	0	3	1	0	2.25

Stock Yards Bancorp has a consensus price target of $83.67, suggesting a potential upside of 24.65%. Given Stock Yards Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Stock Yards Bancorp is more favorable than Truxton.

Profitability

This table compares Truxton and Stock Yards Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Truxton	23.97%	N/A	N/A
Stock Yards Bancorp	23.86%	13.31%	1.45%

Summary

Stock Yards Bancorp beats Truxton on 13 of the 17 factors compared between the two stocks.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

About Stock Yards Bancorp

Stock Yards Bancorp, Inc. operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States. It operates in two segments, Commercial Banking, and WM&T. The Commercial Banking segment offers a range of loan and deposit products to individual consumers and businesses in all its markets through retail lending, mortgage banking, deposit services, online banking, mobile banking, private banking, commercial lending, commercial real estate lending, leasing, treasury management services, merchant services, international banking, correspondent banking, and other banking services. This segment also provides securities brokerage services through an arrangement with a third party broker-dealer. The WM&T segment provides investment management, financial and retirement planning, and trust and estate services, as well as retirement plan management for businesses and corporations. It provides services in Louisville, central, eastern, and northern Kentucky, as well as Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. The company was founded in 1904 and is headquartered in Louisville, Kentucky.