Heartland Financial USA (NASDAQ: HTLF) and Heritage Oaks Bancorp (NASDAQ:HEOP) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
This is a breakdown of current ratings and price targets for Heartland Financial USA and Heritage Oaks Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heartland Financial USA||0||4||2||0||2.33|
|Heritage Oaks Bancorp||0||0||0||0||N/A|
Heartland Financial USA currently has a consensus target price of $56.20, suggesting a potential upside of 2.84%.
Heartland Financial USA pays an annual dividend of $0.52 per share and has a dividend yield of 1.0%. Heritage Oaks Bancorp pays an annual dividend of $0.24 per share. Heartland Financial USA pays out 19.5% of its earnings in the form of a dividend. Heritage Oaks Bancorp pays out 48.0% 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. Heartland Financial USA is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
52.5% of Heartland Financial USA shares are owned by institutional investors. Comparatively, 63.1% of Heritage Oaks Bancorp shares are owned by institutional investors. 9.0% of Heartland Financial USA shares are owned by insiders. Comparatively, 31.3% of Heritage Oaks Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Heartland Financial USA and Heritage Oaks Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Heartland Financial USA||$465.68 million||3.64||$75.27 million||$2.66||20.55|
|Heritage Oaks Bancorp||N/A||N/A||N/A||$0.50||N/A|
Heartland Financial USA has higher revenue and earnings than Heritage Oaks Bancorp. Heritage Oaks Bancorp is trading at a lower price-to-earnings ratio than Heartland Financial USA, indicating that it is currently the more affordable of the two stocks.
This table compares Heartland Financial USA and Heritage Oaks Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Heartland Financial USA||16.16%||9.64%||0.95%|
|Heritage Oaks Bancorp||22.37%||8.53%||0.91%|
Heartland Financial USA beats Heritage Oaks Bancorp on 7 of the 11 factors compared between the two stocks.
About Heartland Financial USA
Heartland Financial USA, Inc. (Heartland) is a diversified financial services company engaged in providing banking, mortgage, private client, investment, treasury management, card services, insurance, and consumer finance services to individuals and businesses. Its segments include community and other banking, and retail mortgage banking. Its community and other banking segment is engaged in making loans to, and generating deposits from, individuals and businesses in the markets where Heartland has banks. Its retail mortgage banking segment is engaged in the origination of residential loans and subsequent sale of those loans to investors. The Company conducts its community banking business through independently chartered community banks (collectively, the Bank Subsidiaries). Its securities portfolio consists of United States Government corporations and agencies, mortgage-backed securities and other securities. Its loans include commercial, commercial real estate and consumer loans.
About Heritage Oaks Bancorp
Heritage Oaks Bancorp is a bank holding company for Heritage Oaks Bank (the Bank). The Bank is a community-oriented financial services company that provides banking products and services to small and medium sized businesses and consumers. As of December 31, 2016, its products and services were offered primarily through 12 retail branches located on the Central Coast of California, in San Luis Obispo and Santa Barbara Counties and through other direct channels, including a loan production office in Ventura County. The Bank offers to its commercial clients commercial loans secured by real estate, other commercial loans and lines of credit, agricultural loans, construction financing, other real estate loans and small business administration loans. Its deposit products offered include personal and business checking and savings accounts, time deposit accounts, individual retirement accounts (IRAs), health savings accounts (HSAs), and money market accounts.
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