TrustCo Bank Corp NY (NASDAQ:TRST) versus Ballston Spa Bancorp (OTCMKTS:BSPA) Critical Review

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

Risk and Volatility

TrustCo Bank Corp NY has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Ballston Spa Bancorp has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500.

Valuation and Earnings

This table compares TrustCo Bank Corp NY and Ballston Spa Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$263.15 million	2.60	$48.83 million	$2.81	12.94
Ballston Spa Bancorp	$36.16 million	1.52	$4.78 million	N/A	N/A

TrustCo Bank Corp NY has higher revenue and earnings than Ballston Spa Bancorp.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. Ballston Spa Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 1.9%. TrustCo Bank Corp NY pays out 54.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 2.4% of Ballston Spa Bancorp shares are owned by institutional investors. 2.9% of TrustCo Bank Corp NY shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	19.84%	7.85%	0.85%
Ballston Spa Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for TrustCo Bank Corp NY and Ballston Spa Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	1	0	3.00
Ballston Spa Bancorp	0	0	0	0	0.00

Summary

TrustCo Bank Corp NY beats Ballston Spa Bancorp on 12 of the 13 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 Ballston Spa Bancorp

Ballston Spa Bancorp, Inc. operates as a holding company for Ballston Spa National Bank that provides a range of banking, financing, fiduciary, brokerage, and other financial services to corporate, municipal, and individual customers in the United States. It offers checking, money market, savings, health savings, and individual retirement accounts, as well as certificates of deposit; loan products, such as mortgage and home construction, improvement, and equity loans, auto, boat, RV, personal, commercial, and small business loans, as well as lines of credit and government programs; and debits and credit cards. The company also provides personal investment services, which include annuities, college savings plans, mutual funds, and life and long term care insurance products; retirement plans; college planning services; investment and asset management; trusteeship; estate settlement; special needs and disability trusts; and wealth management services. In addition, the company offers treasury management services; and merchant and payment processing services, as well as online and mobile banking, and digital payments. The company was founded in 1838 and is based in Ballston Spa, New York.