Reviewing Heartland Financial USA (NASDAQ:HTLF) and First NBC Bank (NASDAQ:FNBCQ)

First NBC Bank (OTCMKTS:FNBCQ) and Heartland Financial USA (NASDAQ:HTLF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares First NBC Bank and Heartland Financial USA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First NBC Bank N/A N/A N/A N/A N/A
Heartland Financial USA $574.98 million 2.94 $117.00 million $3.52 13.07

Heartland Financial USA has higher revenue and earnings than First NBC Bank.

Institutional and Insider Ownership

53.5% of Heartland Financial USA shares are owned by institutional investors. 8.4% of First NBC Bank shares are owned by insiders. Comparatively, 6.1% of Heartland Financial USA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for First NBC Bank and Heartland Financial USA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First NBC Bank 0 0 0 0 N/A
Heartland Financial USA 0 0 1 0 3.00

Heartland Financial USA has a consensus target price of $53.00, suggesting a potential upside of 15.17%. Given Heartland Financial USA’s higher possible upside, analysts plainly believe Heartland Financial USA is more favorable than First NBC Bank.

Volatility and Risk

First NBC Bank has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Heartland Financial USA has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Dividends

First NBC Bank pays an annual dividend of $0.12 per share and has a dividend yield of 401.3%. Heartland Financial USA pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Heartland Financial USA pays out 20.5% of its earnings in the form of a dividend.

Profitability

This table compares First NBC Bank and Heartland Financial USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First NBC Bank N/A N/A N/A
Heartland Financial USA 23.03% 9.92% 1.21%

Summary

Heartland Financial USA beats First NBC Bank on 7 of the 11 factors compared between the two stocks.

About First NBC Bank

First NBC Bank Holding Co. engages in the provision of financial services through its subsidiary, First NBC Bank. Its products and services include mortgage loans, commercial banking, and personal banking services. The company was founded in 2007 and is headquartered in New Orleans, LA.

About Heartland Financial USA

Heartland Financial USA, Inc., a multi-bank holding company, provides commercial, small business, and consumer banking services to individuals and businesses in the United States. It accepts various deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, health savings accounts, and other time deposits. The company also offers commercial and industrial loans; commercial real estate loans; real estate mortgage loans; small business loans; agricultural loans; consumer loans comprising motor vehicle loans, home improvement loans, home equity line of credit, and fixed rate home equity and personal lines of credit; and credit cards for commercial, business, and personal use. In addition, it provides online banking, mobile banking, telephone banking, bill payment, automated clearing house, wire transfer, zero balance account, transaction reporting, lock box, remote deposit capture, accounts receivable, investment sweep account, reconciliation, treasury management, foreign exchange, and various fraud prevention services, as well as commercial purchasing and merchant credit cards, debit cards, and automated teller machines. Further, the company offers investment services, such as mutual funds, annuities, retirement products, education savings products, brokerage services, employer sponsored plans, and insurance products, as well as vehicle, property and casualty, and life and disability insurance products. Additionally, it is involved in the community development, consumer finance, multi-line insurance agency, and property management businesses. The company operates through a network of 119 banking locations in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas, and California. Heartland Financial USA, Inc. was founded in 1981 and is headquartered in Dubuque, Iowa.

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