Financial Analysis: TrustCo Bank Corp NY (NASDAQ:TRST) versus Bank OZK (NASDAQ:OZK)

TrustCo Bank Corp NY (NASDAQ:TRST) and Bank OZK (NASDAQ:OZK) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares TrustCo Bank Corp NY and Bank OZK”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$171.54 million	3.62	$58.65 million	$2.50	13.05
Bank OZK	$1.65 billion	3.01	$690.78 million	$6.08	7.21

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

Insider and Institutional Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 86.2% of Bank OZK shares are owned by institutional investors. 3.3% of TrustCo Bank Corp NY shares are owned by insiders. Comparatively, 6.7% of Bank OZK shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares TrustCo Bank Corp NY and Bank OZK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	18.24%	7.24%	0.77%
Bank OZK	26.07%	14.15%	1.96%

Analyst Ratings

This is a breakdown of recent ratings and target prices for TrustCo Bank Corp NY and Bank OZK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	0	0	0.00
Bank OZK	2	6	1	0	1.89

Bank OZK has a consensus price target of $49.33, suggesting a potential upside of 12.56%. Given Bank OZK’s stronger consensus rating and higher possible upside, analysts plainly believe Bank OZK is more favorable than TrustCo Bank Corp NY.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.44 per share and has a dividend yield of 4.4%. Bank OZK pays an annual dividend of $1.64 per share and has a dividend yield of 3.7%. TrustCo Bank Corp NY pays out 57.6% of its earnings in the form of a dividend. Bank OZK 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. Bank OZK has increased its dividend for 28 consecutive years.

Risk & Volatility

TrustCo Bank Corp NY has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Bank OZK has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Summary

Bank OZK beats TrustCo Bank Corp NY on 14 of the 17 factors compared between the two stocks.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.

About Bank OZK

Bank OZK provides various retail and commercial banking services for individuals and businesses in the United States. The company offers deposit services, including non-interest bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time and reciprocal deposits. It also provides trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts, as well as corporate trust services, including trustee, paying agent and registered transfer agent services, and other related services. In addition, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, commercial card, and other services, as well as zero balance and investment sweep accounts. Further, it provides real estate, consumer, small business, indirect recreational vehicle and marine, equipment, agricultural, commercial and industrial, government guaranteed, lines of credit, homebuilder, and affordable housing loans; lender and structured, business aviation, and subscription financing services; and mortgage and other lending products. Additionally, the company offers ATMs; telephone, online, and mobile banking services; credit and debit cards; safe deposit boxes; and other products and services. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.