Financial Contrast: First Us Bancsh (NASDAQ:FUSB) vs. Trustmark (NASDAQ:TRMK)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Trustmark and First Us Bancsh, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trustmark	0	5	0	1	2.33
First Us Bancsh	0	0	0	1	4.00

Trustmark currently has a consensus target price of $47.38, indicating a potential downside of 1.05%. Given Trustmark’s higher possible upside, research analysts clearly believe Trustmark is more favorable than First Us Bancsh.

Dividends

Trustmark pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Trustmark pays out 25.0% of its earnings in the form of a dividend. First Us Bancsh pays out 20.6% 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. Trustmark has increased its dividend for 1 consecutive years and First Us Bancsh has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

67.6% of Trustmark shares are held by institutional investors. Comparatively, 18.7% of First Us Bancsh shares are held by institutional investors. 1.7% of Trustmark shares are held by company insiders. Comparatively, 12.1% of First Us Bancsh shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Trustmark and First Us Bancsh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trustmark	20.90%	10.78%	1.20%
First Us Bancsh	12.15%	7.58%	0.67%

Volatility and Risk

Trustmark has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, First Us Bancsh has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.

Valuation and Earnings

This table compares Trustmark and First Us Bancsh”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trustmark	$1.12 billion	2.46	$224.13 million	$4.00	11.97
First Us Bancsh	$42.11 million	2.04	$5.99 million	$1.36	12.39

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

Summary

Trustmark beats First Us Bancsh on 11 of the 16 factors compared between the two stocks.

About Trustmark

Trustmark Corporation is a bank holding company headquartered in Jackson, Mississippi. Through its subsidiary, Trustmark National Bank, the company provides commercial and consumer banking services, including deposit accounts, lending, cash management and digital banking. Trustmark also offers wealth management and insurance services to individuals and businesses. Its insurance operations provide services such as employee benefits and risk management. Founded in 1889, Trustmark serves customers across the southeastern United States, with a presence in Mississippi, Alabama, Florida, Tennessee and Texas.

About First Us Bancsh

First US Bancshares, Inc. is a bank holding company whose primary subsidiary, First US Bank, provides community banking services to individuals and businesses. Its offerings include deposit accounts, consumer and commercial loans, mortgage lending, and other banking services. First US Bank serves customers in Alabama, Tennessee, and Virginia through its branch network and digital banking channels. The company is headquartered in Birmingham, Alabama.