Harleysville Financial (OTCMKTS:HARL – Get Free Report) and Trustmark (NASDAQ:TRMK – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
Risk and Volatility
Harleysville Financial has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Harleysville Financial and Trustmark, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harleysville Financial | 0 | 0 | 0 | 0 | N/A |
| Trustmark | 0 | 5 | 0 | 0 | 2.00 |
Dividends
Harleysville Financial pays an annual dividend of $1.20 per share and has a dividend yield of 5.4%. Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 4.0%. Harleysville Financial pays out 37.0% of its earnings in the form of a dividend. Trustmark pays out 54.4% 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. Harleysville Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Harleysville Financial and Trustmark’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harleysville Financial | $29.90 million | 2.74 | $8.79 million | $3.24 | 6.91 |
| Trustmark | $650.71 million | 2.18 | $71.89 million | $1.69 | 13.76 |
Trustmark has higher revenue and earnings than Harleysville Financial. Harleysville Financial is trading at a lower price-to-earnings ratio than Trustmark, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.2% of Harleysville Financial shares are held by institutional investors. Comparatively, 66.1% of Trustmark shares are held by institutional investors. 14.5% of Harleysville Financial shares are held by insiders. Comparatively, 1.4% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Harleysville Financial and Trustmark’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harleysville Financial | 33.67% | 14.39% | 1.38% |
| Trustmark | 10.87% | 11.69% | 0.99% |
Summary
Harleysville Financial beats Trustmark on 8 of the 14 factors compared between the two stocks.
About Harleysville Financial
Harleysville Financial Corporation operates as the bank holding company for Harleysville Bank that provides various banking products and services primarily in southeastern Pennsylvania. The company offers various deposit products, including savings, money market, and checking accounts; and certificates of deposit. It also provides auto, mortgage, home equity, savings account, business term, and commercial real estate loans, as well as line of credit. In addition, the company offers online banking and bill payment, mobile banking, debit card, telephone banking, remote deposit, automated clearing house processing, sweep account, zero balance account, employee, and other cash management services. Further, it provides investment services, such as financial consultation, cash and wealth management, education planning, investment strategy, insurance, retirement and estate planning, financial and goal planning, and asset allocation services, as well as offers investment products, such as fixed and variable annuities, mutual funds, life insurances, stocks and bonds, tax-advantaged investments, long-term care insurances, disability insurances, retirement plans/individual retirement accounts, wrap accounts, and unit investment trusts. Additionally, the company offers consumer loans, including residential mortgage, construction, and non-real estate consumer loans; and commercial loans, such as commercial mortgages and commercial business loans. The company was formerly known as Harleysville Savings Financial Corporation and changed its name to Harleysville Financial Corporation in May 2017. The company was incorporated in 1915 and is headquartered in Harleysville, Pennsylvania.
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. The company was founded in 1889 and is headquartered in Jackson, Mississippi.
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