HTBK vs. LBC, THFF, UVSP, CFB, BMRC, SBCF, TOWN, FRME, HTLF, and TRMK
Should you be buying Heritage Commerce stock or one of its competitors? The main competitors of Heritage Commerce include Luther Burbank (LBC), First Financial (THFF), Univest Financial (UVSP), CrossFirst Bankshares (CFB), Bank of Marin Bancorp (BMRC), Seacoast Banking Co. of Florida (SBCF), TowneBank (TOWN), First Merchants (FRME), Heartland Financial USA (HTLF), and Trustmark (TRMK). These companies are all part of the "finance" sector.
Luther Burbank (NASDAQ:LBC) and Heritage Commerce (NASDAQ:HTBK) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, community ranking, earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and media sentiment.
Luther Burbank pays an annual dividend of $0.48 per share and has a dividend yield of 5.2%. Heritage Commerce pays an annual dividend of $0.52 per share and has a dividend yield of 6.6%. Luther Burbank pays out 67.6% of its earnings in the form of a dividend. Heritage Commerce pays out 56.5% 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. Heritage Commerce is clearly the better dividend stock, given its higher yield and lower payout ratio.
Heritage Commerce received 167 more outperform votes than Luther Burbank when rated by MarketBeat users. Likewise, 58.66% of users gave Heritage Commerce an outperform vote while only 56.47% of users gave Luther Burbank an outperform vote.
15.0% of Luther Burbank shares are owned by institutional investors. Comparatively, 75.6% of Heritage Commerce shares are owned by institutional investors. 23.2% of Luther Burbank shares are owned by insiders. Comparatively, 4.0% of Heritage Commerce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Luther Burbank presently has a consensus target price of $12.50, suggesting a potential upside of 36.61%. Heritage Commerce has a consensus target price of $10.50, suggesting a potential upside of 33.25%. Given Heritage Commerce's higher possible upside, research analysts plainly believe Luther Burbank is more favorable than Heritage Commerce.
Luther Burbank has higher earnings, but lower revenue than Heritage Commerce. Heritage Commerce is trading at a lower price-to-earnings ratio than Luther Burbank, indicating that it is currently the more affordable of the two stocks.
Luther Burbank has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Heritage Commerce has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.
Heritage Commerce has a net margin of 22.84% compared to Heritage Commerce's net margin of 10.43%. Luther Burbank's return on equity of 8.36% beat Heritage Commerce's return on equity.
In the previous week, Luther Burbank's average media sentiment score of 1.83 beat Heritage Commerce's score of 0.00 indicating that Heritage Commerce is being referred to more favorably in the news media.
Summary
Heritage Commerce beats Luther Burbank on 13 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HTBK and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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