German American Bancorp (NASDAQ:GABC) & Trustmark (NASDAQ:TRMK) Head to Head Survey

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

Volatility and Risk

German American Bancorp has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Valuation & Earnings

This table compares German American Bancorp and Trustmark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
German American Bancorp	$394.24 million	4.77	$112.64 million	$3.88	12.91
Trustmark	$1.12 billion	2.31	$224.13 million	$4.00	11.16

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

Insider and Institutional Ownership

46.9% of German American Bancorp shares are held by institutional investors. Comparatively, 67.6% of Trustmark shares are held by institutional investors. 3.2% of German American Bancorp shares are held by insiders. Comparatively, 1.7% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for German American Bancorp and Trustmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	2	2	2	3.00
Trustmark	0	4	1	1	2.50

German American Bancorp currently has a consensus target price of $53.33, suggesting a potential upside of 6.50%. Trustmark has a consensus target price of $47.38, suggesting a potential upside of 6.13%. Given German American Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe German American Bancorp is more favorable than Trustmark.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	28.78%	12.33%	1.74%
Trustmark	20.90%	10.78%	1.20%

Dividends

German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. German American Bancorp pays out 32.0% of its earnings in the form of a dividend. Trustmark pays out 25.0% 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. German American Bancorp has raised its dividend for 13 consecutive years and Trustmark has raised its dividend for 1 consecutive years. German American Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

German American Bancorp beats Trustmark on 12 of the 18 factors compared between the two stocks.

About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

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.