Hilltop (HTH) and Reliant Bancorp (RBNC) Critical Contrast

Hilltop (NYSE: HTH) and Reliant Bancorp (NASDAQ:RBNC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Hilltop and Reliant Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilltop 2 4 0 0 1.67
Reliant Bancorp 0 1 1 0 2.50

Hilltop currently has a consensus price target of $28.50, indicating a potential upside of 28.03%. Reliant Bancorp has a consensus price target of $25.25, indicating a potential downside of 12.27%. Given Hilltop’s higher probable upside, analysts clearly believe Hilltop is more favorable than Reliant Bancorp.

Insider & Institutional Ownership

56.8% of Hilltop shares are held by institutional investors. Comparatively, 24.4% of Reliant Bancorp shares are held by institutional investors. 22.3% of Hilltop shares are held by company insiders. Comparatively, 13.1% of Reliant Bancorp 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.

Volatility and Risk

Hilltop has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Reliant Bancorp has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares Hilltop and Reliant Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilltop 7.67% 8.32% 1.19%
Reliant Bancorp 16.11% 7.04% 0.87%

Earnings & Valuation

This table compares Hilltop and Reliant Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilltop $1.71 billion 1.25 $132.54 million $1.66 13.41
Reliant Bancorp $46.17 million 7.16 $7.24 million N/A N/A

Hilltop has higher revenue and earnings than Reliant Bancorp.

Dividends

Hilltop pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Reliant Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Hilltop pays out 16.9% of its earnings in the form of a dividend.

Summary

Hilltop beats Reliant Bancorp on 9 of the 15 factors compared between the two stocks.

About Hilltop

Hilltop Holdings Inc. provides banking and financial products and services. Its Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial, industrial, and single family residential mortgage loans. This segment also provides term and construction finance; check cards and safe deposit boxes; treasury management, Internet banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, and investment portfolio management services, as well as employee benefit and individual retirement accounts. The company's Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed and asset-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The company's Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veteran Affairs, and United States Department of Agriculture loans. Its Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, flood, and vacant policies; and commercial lines, such as commercial multi-peril, builders risk, builders risk renovation, sports liability, and inland marine policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, Maryland, North Carolina, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

About Reliant Bancorp

Reliant Bancorp, Inc. operates as the holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Its deposit products include checking, savings, and money market deposit accounts; time deposits; certificates of deposit; and non-interest-bearing and interest bearing demand deposits. The company's loan portfolio comprises residential mortgage loans and mortgage refinancing; commercial, industrial, and agricultural loans; multi-family and commercial real estate loans; construction, land development, and farmland loans; 1-4 family residential real estate loans; home equity loans; and consumer loans, such as loans for household, family, and other personal expenditures. It also provides safe deposit box, debit card, direct deposit, and official bank check services. The company operates through seven branches in Davidson, Robertson, Sumner, and Williamson counties in Tennessee. The company was formerly known as Commerce Union Bancshares, Inc. and changed its name to Reliant Bancorp, Inc. in January 2018. Reliant Bancorp, Inc. was founded in 2006 and is based in Brentwood, Tennessee.

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