Comparing TrustCo Bank Corp NY (NASDAQ:TRST) and Peapack-Gladstone Financial (NASDAQ:PGC)

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

Volatility & Risk

TrustCo Bank Corp NY has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

68.6% of TrustCo Bank Corp NY shares are held by institutional investors. Comparatively, 72.8% of Peapack-Gladstone Financial shares are held by institutional investors. 3.4% of TrustCo Bank Corp NY shares are held by company insiders. Comparatively, 5.8% of Peapack-Gladstone Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares TrustCo Bank Corp NY and Peapack-Gladstone Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	22.83%	10.00%	1.02%
Peapack-Gladstone Financial	12.69%	9.08%	0.77%

Valuation & Earnings

This table compares TrustCo Bank Corp NY and Peapack-Gladstone Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$278.36 million	3.43	$61.14 million	$3.76	15.38
Peapack-Gladstone Financial	$444.61 million	1.84	$37.33 million	$3.33	13.83

TrustCo Bank Corp NY has higher earnings, but lower revenue than Peapack-Gladstone Financial. Peapack-Gladstone Financial 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

TrustCo Bank Corp NY pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. TrustCo Bank Corp NY pays out 42.6% of its earnings in the form of a dividend. Peapack-Gladstone Financial pays out 6.0% 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 Ratings

This is a breakdown of recent ratings and price targets for TrustCo Bank Corp NY and Peapack-Gladstone Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	0	1	4.00
Peapack-Gladstone Financial	0	2	3	0	2.60

Peapack-Gladstone Financial has a consensus target price of $56.33, indicating a potential upside of 22.33%. Given Peapack-Gladstone Financial’s higher possible upside, analysts clearly believe Peapack-Gladstone Financial is more favorable than TrustCo Bank Corp NY.

Summary

TrustCo Bank Corp NY beats Peapack-Gladstone Financial on 10 of the 17 factors compared between the two stocks.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a bank holding company whose principal subsidiary is Trustco Bank. Founded in 1902 as Schenectady Trust Company, the bank has grown from its roots in upstate New York into a regional community banking institution. Trustco Bank offers personal and business deposit accounts, including checking, savings and certificates of deposit, along with residential mortgages, home equity financing and other consumer and commercial loans. Its services also include online and mobile banking and trust and investment services.

About Peapack-Gladstone Financial

Peapack-Gladstone Financial Corporation is a bank holding company whose principal subsidiary, Peapack-Gladstone Bank, provides commercial banking and wealth management services. The bank serves individuals, families, businesses and nonprofit organizations, with a focus on personalized banking and financial advice. Its services include deposits, lending, cash management and other banking solutions, as well as investment management, trust and fiduciary services, financial planning and private banking through its Peapack Private business.