Analyzing Simmons First National (NASDAQ:SFNC) and Truxton (OTCMKTS:TRUX)

Simmons First National (NASDAQ:SFNC) and Truxton (OTCMKTS:TRUX) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Earnings and Valuation

This table compares Simmons First National and Truxton”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simmons First National	$1.43 billion	2.16	-$397.55 million	($2.56)	-8.30
Truxton	$92.29 million	2.90	$21.48 million	$7.44	12.43

Truxton has lower revenue, but higher earnings than Simmons First National. Simmons First National is trading at a lower price-to-earnings ratio than Truxton, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Simmons First National has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Truxton has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Simmons First National and Truxton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simmons First National	-25.44%	7.81%	1.07%
Truxton	23.28%	N/A	N/A

Dividends

Simmons First National pays an annual dividend of $0.86 per share and has a dividend yield of 4.0%. Truxton pays an annual dividend of $3.52 per share and has a dividend yield of 3.8%. Simmons First National pays out -33.6% of its earnings in the form of a dividend. Truxton pays out 47.3% 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. Simmons First National has increased its dividend for 14 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

27.6% of Simmons First National shares are held by institutional investors. Comparatively, 0.3% of Truxton shares are held by institutional investors. 0.8% of Simmons First National shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Simmons First National and Truxton, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simmons First National	0	5	2	2	2.67
Truxton	0	0	0	0	0.00

Simmons First National presently has a consensus price target of $22.00, indicating a potential upside of 3.48%. Given Simmons First National’s stronger consensus rating and higher probable upside, equities analysts clearly believe Simmons First National is more favorable than Truxton.

Summary

Simmons First National beats Truxton on 13 of the 18 factors compared between the two stocks.

About Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

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.