TrustCo Bank Corp NY (NASDAQ: TRST) and Fidelity Southern Corporation (NASDAQ:LION) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TrustCo Bank Corp NY and Fidelity Southern Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrustCo Bank Corp NY 0 0 0 0 N/A
Fidelity Southern Corporation 0 2 1 0 2.33

Fidelity Southern Corporation has a consensus price target of $24.50, suggesting a potential upside of 12.96%. Given Fidelity Southern Corporation’s higher probable upside, analysts plainly believe Fidelity Southern Corporation is more favorable than TrustCo Bank Corp NY.

Earnings and Valuation

This table compares TrustCo Bank Corp NY and Fidelity Southern Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TrustCo Bank Corp NY $165.49 million 4.59 $44.21 million $0.46 17.17
Fidelity Southern Corporation $269.22 million 2.15 $47.53 million $1.78 12.19

Fidelity Southern Corporation has higher revenue and earnings than TrustCo Bank Corp NY. Fidelity Southern Corporation 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.

Profitability

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

Net Margins Return on Equity Return on Assets
TrustCo Bank Corp NY 24.58% 10.24% 0.92%
Fidelity Southern Corporation 14.95% 12.87% 1.05%

Insider & Institutional Ownership

57.2% of TrustCo Bank Corp NY shares are held by institutional investors. Comparatively, 67.9% of Fidelity Southern Corporation shares are held by institutional investors. 0.2% of TrustCo Bank Corp NY shares are held by company insiders. Comparatively, 18.8% of Fidelity Southern Corporation 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.

Volatility & Risk

TrustCo Bank Corp NY has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Fidelity Southern Corporation has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $0.26 per share and has a dividend yield of 3.3%. Fidelity Southern Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 2.2%. TrustCo Bank Corp NY pays out 56.5% of its earnings in the form of a dividend. Fidelity Southern Corporation 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.

Summary

Fidelity Southern Corporation beats TrustCo Bank Corp NY on 11 of the 15 factors compared between the two stocks.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a savings and loan holding company. The Company’s principal subsidiary is Trustco Bank (the Bank). The Bank is a federal savings bank engaged in providing general banking services to individuals, partnerships and corporations. It operates through community banking segment. The Bank’s business consists of accepting deposits and making loans and investments. The Bank provides both personal and business banking services. The Bank’s subsidiary, Trustco Realty Corp., is a real estate investment trust (REIT) formed to acquire, hold and manage real estate mortgage assets, including residential mortgage loans and mortgage backed securities. The Bank’s trust department operates under the name, Trustco Financial Services, and serves as executor of estates and trustee of personal trusts, provides asset and wealth management services, and provides estate planning and related advice, provides custodial services.

About Fidelity Southern Corporation

Fidelity Southern Corporation is a bank holding company. The Company conducts its operations through its subsidiary bank, Fidelity Bank, which is a state chartered bank (the Bank). The Company provides an array of financial products and services for business and retail customers in the metropolitan Atlanta and Jacksonville, Orlando and Sarasota-Bradenton, Florida markets. The Company provides mortgage loans, indirect automobile loans and Small Business Administration (SBA) loans throughout the South and parts of the Midwest. It delivers its products and services through a network of offices located in Southern states. As of December 31, 2016, it owned 55 and leased 10 retail bank branches and it leased 27 loan production offices. The Company is primarily engaged in attracting deposits from individuals and businesses and using these deposits and borrowed funds to originate commercial, residential mortgage, construction and installment loans.

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