Chesapeake Financial Shares (OTCMKTS:CPKF) vs. Trustmark (NASDAQ:TRMK) Financial Review

Chesapeake Financial Shares (OTCMKTS:CPKF) and Trustmark (NASDAQ:TRMK) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Chesapeake Financial Shares and Trustmark, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Financial Shares	0	0	0	0	0.00
Trustmark	0	4	2	0	2.33

Trustmark has a consensus target price of $38.67, indicating a potential upside of 11.95%. Given Trustmark’s stronger consensus rating and higher possible upside, analysts plainly believe Trustmark is more favorable than Chesapeake Financial Shares.

Insider & Institutional Ownership

3.7% of Chesapeake Financial Shares shares are owned by institutional investors. Comparatively, 67.6% of Trustmark shares are owned by institutional investors. 39.5% of Chesapeake Financial Shares shares are owned by insiders. Comparatively, 1.5% of Trustmark shares are owned 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.

Volatility and Risk

Chesapeake Financial Shares has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Trustmark has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Dividends

Chesapeake Financial Shares pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. Trustmark pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Chesapeake Financial Shares pays out 26.4% of its earnings in the form of a dividend. Trustmark pays out 26.4% 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 Chesapeake Financial Shares and Trustmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Financial Shares	11.50%	10.69%	0.74%
Trustmark	19.42%	10.12%	1.03%

Earnings & Valuation

This table compares Chesapeake Financial Shares and Trustmark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Financial Shares	$99.39 million	0.88	$11.43 million	$2.42	7.64
Trustmark	$455.46 million	4.61	$223.01 million	$3.64	9.49

Trustmark has higher revenue and earnings than Chesapeake Financial Shares. Chesapeake Financial Shares 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 Chesapeake Financial Shares on 13 of the 16 factors compared between the two stocks.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.

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.