Financial Comparison: Trustmark (NASDAQ:TRMK) and Chesapeake Financial Shares (OTCMKTS:CPKF)

Trustmark (NASDAQ:TRMK) and Chesapeake Financial Shares (OTCMKTS:CPKF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Dividends

Trustmark pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Chesapeake Financial Shares pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. Trustmark pays out 26.4% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 26.4% 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.

Earnings and Valuation

This table compares Trustmark and Chesapeake Financial Shares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$455.46 million	4.61	$223.01 million	$3.64	9.49
Chesapeake Financial Shares	$99.39 million	0.88	$11.43 million	$2.42	7.64

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

Analyst Ratings

This is a breakdown of recent ratings for Trustmark and Chesapeake Financial Shares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	4	2	0	2.33
Chesapeake Financial Shares	0	0	0	0	0.00

Trustmark presently has a consensus price target of $38.67, indicating a potential upside of 11.95%. Given Trustmark’s stronger consensus rating and higher probable upside, research analysts plainly believe Trustmark is more favorable than Chesapeake Financial Shares.

Profitability

This table compares Trustmark and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	19.42%	10.12%	1.03%
Chesapeake Financial Shares	11.50%	10.69%	0.74%

Institutional & Insider Ownership

67.6% of Trustmark shares are owned by institutional investors. Comparatively, 3.7% of Chesapeake Financial Shares shares are owned by institutional investors. 1.5% of Trustmark shares are owned by company insiders. Comparatively, 39.5% of Chesapeake Financial Shares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Trustmark has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Summary

Trustmark beats Chesapeake Financial Shares on 13 of the 16 factors compared between the two stocks.

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.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.