Northeast Bancorp (NASDAQ:NBN) and TrustCo Bank Corp NY (NASDAQ:TRST) Head to Head Survey

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

Valuation and Earnings

This table compares TrustCo Bank Corp NY and Northeast Bancorp”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	$278.36 million	3.35	$61.14 million	$3.60	15.21
Northeast Bancorp	$385.07 million	2.66	$107.48 million	$12.72	9.80

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

Analyst Ratings

This is a summary of recent ratings and target prices for TrustCo Bank Corp NY and Northeast Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	1	0	3.00
Northeast Bancorp	0	1	2	0	2.67

Northeast Bancorp has a consensus price target of $143.50, indicating a potential upside of 15.08%. Given Northeast Bancorp’s higher possible upside, analysts plainly believe Northeast Bancorp is more favorable than TrustCo Bank Corp NY.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. TrustCo Bank Corp NY pays out 44.4% of its earnings in the form of a dividend. Northeast Bancorp pays out 0.3% 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.

Volatility and Risk

TrustCo Bank Corp NY has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. 3.4% of TrustCo Bank Corp NY shares are owned by insiders. Comparatively, 14.2% of Northeast Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	22.76%	9.62%	1.01%
Northeast Bancorp	27.91%	19.35%	2.22%

Summary

Northeast Bancorp beats TrustCo Bank Corp NY on 10 of the 16 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 Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.