Contrasting Trinity Bank, N.A. (OTCMKTS:TYBT) and Territorial Bancorp (NASDAQ:TBNK)

Territorial Bancorp (NASDAQ:TBNK) and Trinity Bank, N.A. (OTCMKTS:TYBT) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Territorial Bancorp and Trinity Bank, N.A., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Territorial Bancorp	0	2	0	0	2.00
Trinity Bank, N.A.	0	0	0	0	N/A

Territorial Bancorp currently has a consensus target price of $9.89, suggesting a potential upside of 1.38%. Given Territorial Bancorp’s higher probable upside, research analysts plainly believe Territorial Bancorp is more favorable than Trinity Bank, N.A..

Dividends

Territorial Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Trinity Bank, N.A. pays an annual dividend of $1.76 per share and has a dividend yield of 2.1%. Territorial Bancorp pays out 16.0% of its earnings in the form of a dividend. Trinity Bank, N.A. pays out 24.6% 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.

Profitability

This table compares Territorial Bancorp and Trinity Bank, N.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Territorial Bancorp	-0.06%	-0.02%	N/A
Trinity Bank, N.A.	29.77%	N/A	N/A

Earnings & Valuation

This table compares Territorial Bancorp and Trinity Bank, N.A.’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Territorial Bancorp	$38.89 million	2.21	$5.03 million	$0.25	39.00
Trinity Bank, N.A.	$24.78 million	3.60	$8.02 million	$7.14	11.56

Trinity Bank, N.A. has lower revenue, but higher earnings than Territorial Bancorp. Trinity Bank, N.A. is trading at a lower price-to-earnings ratio than Territorial Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

50.3% of Territorial Bancorp shares are owned by institutional investors. 9.0% of Territorial Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Territorial Bancorp has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Trinity Bank, N.A. has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

Summary

Territorial Bancorp beats Trinity Bank, N.A. on 7 of the 13 factors compared between the two stocks.

About Territorial Bancorp

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that engages in the provision of various financial services to individuals, families, and businesses in the State of Hawaii. The company offers a range of deposit accounts, including passbook and statement savings, money market, commercial and regular checking, and Super NOW accounts, as well as certificates of deposit. It also provides various loan products, such as one-to four-family residential mortgage loans; home equity loans; consumer loans; and multi-family mortgage, commercial business, construction, commercial real estate, and other nonresidential real estate loans, as well as lines of credit and investment securities. In addition, the company is involved in the insurance agency activities. Further, it provides various non-deposit investments comprising annuities and mutual funds through a third-party broker-dealer. The company was founded in 1921 and is headquartered in Honolulu, Hawaii.

About Trinity Bank, N.A.

Trinity Bank, N.A. provides personal and business banking products and services in Texas. It provides personal and business deposits, such as checking and money market accounts; treasury tax and loan deposits; mobile deposits; certificates of deposit; and automobile, secured/unsecured, home improvement, lots and interim construction, installment/term, equipment, and real estate loans, as well as revolving lines of credit. The company also offers cash management, internet and mobile banking, remote capture, CD ROM delivery, foreign and domestic wire transfer, and bill pay services, as well as ATM or Visa check cards, merchant cards, and debit cards. Trinity Bank, N.A. was founded in 2003 and is based in Fort Worth, Texas.