Northrim BanCorp (NASDAQ: NRIM) and Hometrust Bancshares (NASDAQ:HTBI) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Analyst Recommendations
Get Northrim BanCorp alerts:This is a summary of current recommendations and price targets for Northrim BanCorp and Hometrust Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northrim BanCorp | 0 | 0 | 0 | 0 | N/A |
| Hometrust Bancshares | 0 | 2 | 0 | 0 | 2.00 |
Hometrust Bancshares has a consensus price target of $27.50, suggesting a potential upside of 2.04%. Given Hometrust Bancshares’ higher possible upside, analysts plainly believe Hometrust Bancshares is more favorable than Northrim BanCorp.
Earnings and Valuation
This table compares Northrim BanCorp and Hometrust Bancshares’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northrim BanCorp | $100.58 million | 2.71 | $13.15 million | $2.04 | 19.46 |
| Hometrust Bancshares | $114.88 million | 4.47 | $11.72 million | $0.94 | 28.67 |
Northrim BanCorp has higher earnings, but lower revenue than Hometrust Bancshares. Northrim BanCorp is trading at a lower price-to-earnings ratio than Hometrust Bancshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Northrim BanCorp and Hometrust Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northrim BanCorp | 13.47% | 8.45% | 1.08% |
| Hometrust Bancshares | 4.40% | 5.97% | 0.74% |
Volatility & Risk
Northrim BanCorp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Hometrust Bancshares has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Dividends
Northrim BanCorp pays an annual dividend of $0.96 per share and has a dividend yield of 2.4%. Hometrust Bancshares does not pay a dividend. Northrim BanCorp pays out 47.1% of its earnings in the form of a dividend.
Insider & Institutional Ownership
70.7% of Northrim BanCorp shares are held by institutional investors. Comparatively, 60.6% of Hometrust Bancshares shares are held by institutional investors. 2.9% of Northrim BanCorp shares are held by insiders. Comparatively, 6.3% of Hometrust Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Northrim BanCorp beats Hometrust Bancshares on 8 of the 14 factors compared between the two stocks.
About Northrim BanCorp
Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professionals in Alaska. The company operates in two segments, Community Banking and Home Mortgage Lending. It offers various deposit products, including noninterest-bearing checking accounts and interest-bearing time deposits, checking accounts, and savings accounts, as well as money market deposit accounts, certificates of deposit, and courier noncash deposits. The company also provides family residential mortgages; commercial loans, such as secured and unsecured loans for working capital and expansion; commercial real estate loans; construction loans for commercial real estate projects, and land development and residential subdivision construction loans; and consumer loans comprising loans for automobiles, recreational vehicles, boats, and other consumer purchases, as well as home equity and commercial credit lines, and factoring services. In addition, it offers other services comprising consumer online banking, mobile app and mobile deposit, mobile Web and text banking, business online banking, personal finance, online documents, consumer and business debit cards, personalized checks at account opening, telebanking, automated teller, overdraft protection from a savings account, commercial drive-up banking, automatic transfers and payments, wire transfers, direct payroll deposit, electronic tax payments, automated clearing house origination and receipt, remote deposit capture, merchant, and cash management services, as well as annuity products, and long term investment portfolios. As of January 29, 2018, the company operated 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.
About Hometrust Bancshares
HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products. Its deposit products consist of savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company's loan portfolio comprises retail consumer loans, such as one-to-four-family residential property lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans, including commercial real estate lending, construction and development lending, and commercial and industrial loans. It also provides ground and equipment lease financing to fire departments. As of June 30, 2017, the company operated 42 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.
No comments:
Post a Comment