Quaint Oak Bancorp (OTCMKTS:QNTO) and TrustCo Bank Corp NY (NASDAQ:TRST) Critical Comparison

Quaint Oak Bancorp (OTCMKTS:QNTO) and TrustCo Bank Corp NY (NASDAQ:TRST) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Dividends

Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. Quaint Oak Bancorp pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TrustCo Bank Corp NY pays out 44.6% of its earnings in the form of a dividend. TrustCo Bank Corp NY is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Quaint Oak Bancorp has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaint Oak Bancorp	$47.79 million	0.93	$320,000.00	$0.21	80.24
TrustCo Bank Corp NY	$278.36 million	3.28	$61.14 million	$3.41	15.32

TrustCo Bank Corp NY has higher revenue and earnings than Quaint Oak Bancorp. TrustCo Bank Corp NY is trading at a lower price-to-earnings ratio than Quaint Oak Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quaint Oak Bancorp	1.19%	1.09%	0.09%
TrustCo Bank Corp NY	22.42%	9.21%	0.98%

Institutional & Insider Ownership

8.6% of Quaint Oak Bancorp shares are held by institutional investors. Comparatively, 68.6% of TrustCo Bank Corp NY shares are held by institutional investors. 28.6% of Quaint Oak Bancorp shares are held by company insiders. Comparatively, 3.4% of TrustCo Bank Corp NY shares are held 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Quaint Oak Bancorp and TrustCo Bank Corp NY, as reported by MarketBeat.

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

Summary

TrustCo Bank Corp NY beats Quaint Oak Bancorp on 13 of the 15 factors compared between the two stocks.

About Quaint Oak Bancorp

Quaint Oak Bancorp, Inc. operates as the holding company for Quaint Oak Bank that provides banking products and services in Pennsylvania. It offers various deposit products, including money market accounts, certificates of deposit, interest and non-interest-bearing checking accounts for businesses and consumers, and savings accounts. The company also provides residential and commercial mortgage loans, construction loans, commercial business loans, home equity loans, and lines of credit; mortgage banking, real estate sales, title abstract, and insurance services; and multi-state equipment financing services. It serves its customers through offices, as well as correspondence, telephone, and online banking. Quaint Oak Bancorp, Inc. was incorporated in 1926 and is headquartered in Southampton, Pennsylvania.

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.