Head-To-Head Review: Trustmark (NASDAQ:TRMK) & Pathward Financial (NASDAQ:CASH)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Trustmark and Pathward Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	4	1	0	2.20
Pathward Financial	0	1	1	0	2.50

Trustmark presently has a consensus target price of $35.20, indicating a potential upside of 5.99%. Pathward Financial has a consensus target price of $92.00, indicating a potential upside of 27.42%. Given Pathward Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Pathward Financial is more favorable than Trustmark.

Earnings & Valuation

This table compares Trustmark and Pathward Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$1.10 billion	1.85	$165.49 million	$3.31	10.03
Pathward Financial	$604.96 million	2.88	$168.36 million	$6.63	10.89

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

Risk and Volatility

Trustmark has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Pathward Financial has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Dividends

Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.8%. Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Trustmark pays out 27.8% of its earnings in the form of a dividend. Pathward Financial pays out 3.0% 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.

Insider & Institutional Ownership

67.6% of Trustmark shares are owned by institutional investors. Comparatively, 92.7% of Pathward Financial shares are owned by institutional investors. 1.5% of Trustmark shares are owned by company insiders. Comparatively, 0.7% of Pathward Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Trustmark and Pathward Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	17.62%	9.48%	0.92%
Pathward Financial	21.65%	21.86%	2.21%

Summary

Pathward Financial beats Trustmark on 11 of the 15 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 Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.