Analyzing HomeTrust Bancshares (HTBI) & Northrim BanCorp (NRIM)

HomeTrust Bancshares (NASDAQ: HTBI) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for HomeTrust Bancshares and Northrim BanCorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HomeTrust Bancshares 0 2 0 0 2.00
Northrim BanCorp 0 0 0 0 N/A

HomeTrust Bancshares currently has a consensus target price of $27.50, indicating a potential upside of 2.42%. Given HomeTrust Bancshares’ higher possible upside, equities research analysts clearly believe HomeTrust Bancshares is more favorable than Northrim BanCorp.

Dividends

Northrim BanCorp pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. 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

60.6% of HomeTrust Bancshares shares are owned by institutional investors. Comparatively, 70.7% of Northrim BanCorp shares are owned by institutional investors. 6.3% of HomeTrust Bancshares shares are owned by company insiders. Comparatively, 2.8% of Northrim BanCorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares HomeTrust Bancshares and Northrim BanCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HomeTrust Bancshares 4.40% 5.97% 0.74%
Northrim BanCorp 13.47% 8.45% 1.08%

Volatility & Risk

HomeTrust Bancshares has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares HomeTrust Bancshares and Northrim BanCorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HomeTrust Bancshares $114.88 million 4.45 $11.72 million $0.94 28.56
Northrim BanCorp $100.58 million 2.64 $13.15 million $2.04 18.95

Northrim BanCorp has lower revenue, but higher earnings 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.

Summary

Northrim BanCorp beats HomeTrust Bancshares on 8 of the 14 factors compared between the two stocks.

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.

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.

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