Truxton (OTCMKTS:TRUX) vs. M&T Bank (NYSE:MTB) Head to Head Analysis

Truxton (OTCMKTS:TRUX) and M&T Bank (NYSE:MTB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Earnings & Valuation

This table compares Truxton and M&T Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truxton	$67.30 million	3.18	$17.54 million	$6.06	12.29
M&T Bank	$13.45 billion	2.45	$2.59 billion	$14.63	13.59

M&T Bank has higher revenue and earnings than Truxton. Truxton is trading at a lower price-to-earnings ratio than M&T Bank, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.4% of Truxton shares are owned by institutional investors. Comparatively, 84.7% of M&T Bank shares are owned by institutional investors. 0.8% of M&T Bank 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.

Volatility and Risk

Truxton has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Dividends

Truxton pays an annual dividend of $1.72 per share and has a dividend yield of 2.3%. M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 2.7%. Truxton pays out 28.4% of its earnings in the form of a dividend. M&T Bank pays out 36.9% 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 Truxton and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Truxton	23.10%	N/A	N/A
M&T Bank	19.24%	10.12%	1.25%

Analyst Recommendations

This is a summary of recent ratings and price targets for Truxton and M&T Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truxton	0	0	0	0	0.00
M&T Bank	1	8	8	0	2.41

M&T Bank has a consensus price target of $221.68, indicating a potential upside of 11.53%. Given M&T Bank’s stronger consensus rating and higher probable upside, analysts plainly believe M&T Bank is more favorable than Truxton.

Summary

M&T Bank beats Truxton on 13 of the 16 factors compared between the two stocks.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

About M&T Bank

M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management and investment services. It operates through the following segments: Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking. The Business Banking segment provides services to small businesses and professionals through the company’s branch network, business banking centers, and other delivery channels such as telephone banking, Internet banking and automated teller machines. The Commercial Banking segment offers credit products and banking services for middle-market and large commercial customers. The Commercial Real Estate segment includes credit and deposit services to its customers. The Discretionary Portfolio segment consists of investment and trading securities, residential mortgage loans and other assets, short-term and long-term borrowed funds, brokered certificates of deposit and interest rate swap agreements related thereto, and Cayman Islands branch deposits. The Residential Mortgage Banking segment consists of residential mortgage loans and sells substantially all of those loans in the secondary market to investors. The Retail Banking segment offers services to consumers through several delivery channels which include branch offices, automated teller machines, telephone banking, and Internet banking. The company was founded on August 30, 1856, and is headquartered in Buffalo, NY.