Head-To-Head Analysis: Trustmark (NASDAQ:TRMK) vs. CF Bankshares (NASDAQ:CFBK)

CF Bankshares (NASDAQ:CFBK) and Trustmark (NASDAQ:TRMK) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Dividends

CF Bankshares pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Trustmark pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. CF Bankshares pays out 11.7% of its earnings in the form of a dividend. Trustmark pays out 35.8% 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.

Analyst Recommendations

This is a summary of recent recommendations for CF Bankshares and Trustmark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CF Bankshares	0	0	0	0	N/A
Trustmark	0	3	1	0	2.25

Trustmark has a consensus target price of $34.50, indicating a potential upside of 0.00%. Given Trustmark’s higher possible upside, analysts clearly believe Trustmark is more favorable than CF Bankshares.

Risk & Volatility

CF Bankshares has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

41.1% of CF Bankshares shares are held by institutional investors. Comparatively, 67.6% of Trustmark shares are held by institutional investors. 19.7% of CF Bankshares shares are held by insiders. Comparatively, 1.5% of Trustmark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares CF Bankshares and Trustmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CF Bankshares	10.79%	8.35%	0.64%
Trustmark	16.24%	9.32%	0.86%

Valuation & Earnings

This table compares CF Bankshares and Trustmark”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$49.56 million	2.33	$16.94 million	$2.40	9.38
Trustmark	$481.23 million	4.39	$165.49 million	$2.57	13.42

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

Summary

Trustmark beats CF Bankshares on 13 of the 15 factors compared between the two stocks.

About CF Bankshares

CF Bankshares Inc. operates as the bank holding company for CFBank, National Association that provides various banking products and services in the United States. The company accepts savings, retail and business checking accounts, and money market accounts, as well as certificates of deposit. It offers single-family mortgage loans; commercial real estate and multi-family residential mortgage loans; commercial loans and equipment leases; residential real estate loans and treasury management depository services; retail banking services and products. In addition, the company offers consumer loans, such as home equity lines of credit, home improvement loans, and loans secured by deposits and purchased loans, as well as other loans. Further, it provides online internet banking, mobile banking, and remote deposits. The company was formerly known as Central Federal Corporation and changed its name to CF Bankshares Inc. in July 2020. CF Bankshares Inc. was founded in 1892 and is based in Columbus, Ohio.

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.