TrustCo Bank Corp NY (NASDAQ:TRST) vs. RBB Bancorp (NASDAQ:RBB) Head to Head Analysis

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

Earnings and Valuation

This table compares RBB Bancorp and TrustCo Bank Corp NY”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$238.00 million	1.83	$31.95 million	$2.58	9.97
TrustCo Bank Corp NY	$278.36 million	3.51	$61.14 million	$3.76	15.24

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

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. TrustCo Bank Corp NY pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. RBB Bancorp pays out 24.8% of its earnings in the form of a dividend. TrustCo Bank Corp NY pays out 42.6% 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RBB Bancorp and TrustCo Bank Corp NY, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	3	2	0	2.40
TrustCo Bank Corp NY	0	0	1	0	3.00

RBB Bancorp currently has a consensus target price of $29.33, suggesting a potential upside of 14.05%. Given RBB Bancorp’s higher possible upside, analysts plainly believe RBB Bancorp is more favorable than TrustCo Bank Corp NY.

Insider and Institutional Ownership

40.1% of RBB Bancorp shares are held by institutional investors. Comparatively, 68.6% of TrustCo Bank Corp NY shares are held by institutional investors. 6.8% of RBB 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	18.02%	8.35%	1.05%
TrustCo Bank Corp NY	22.83%	10.00%	1.02%

Risk and Volatility

RBB Bancorp has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, TrustCo Bank Corp NY has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Summary

TrustCo Bank Corp NY beats RBB Bancorp on 10 of the 16 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

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.