HomeTrust Bancshares (NYSE:HTB) and First Bank (NASDAQ:FRBA) Head to Head Contrast

HomeTrust Bancshares (NYSE:HTB) and First Bank (NASDAQ:FRBA) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for HomeTrust Bancshares and First Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomeTrust Bancshares	0	3	2	1	2.67
First Bank	0	2	3	0	2.60

HomeTrust Bancshares currently has a consensus target price of $52.00, indicating a potential upside of 12.43%. First Bank has a consensus target price of $19.67, indicating a potential upside of 1.27%. Given HomeTrust Bancshares’ stronger consensus rating and higher probable upside, equities research analysts clearly believe HomeTrust Bancshares is more favorable than First Bank.

Institutional & Insider Ownership

60.9% of HomeTrust Bancshares shares are owned by institutional investors. Comparatively, 64.9% of First Bank shares are owned by institutional investors. 11.0% of HomeTrust Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

HomeTrust Bancshares has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, First Bank has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares HomeTrust Bancshares and First Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomeTrust Bancshares	$292.47 million	2.64	$64.36 million	$3.97	11.65
First Bank	$245.83 million	1.98	$43.66 million	$1.71	11.36

HomeTrust Bancshares has higher revenue and earnings than First Bank. First Bank 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 HomeTrust Bancshares and First Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HomeTrust Bancshares	23.19%	11.12%	1.49%
First Bank	17.73%	9.58%	1.07%

Dividends

HomeTrust Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. HomeTrust Bancshares pays out 15.1% of its earnings in the form of a dividend. First Bank pays out 21.1% 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.

Summary

HomeTrust Bancshares beats First Bank on 14 of the 17 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 and services. Its deposit products include 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 real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. It also provides small business administration loans, equipment finance leases, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services. As of June 30, 2021, the company operated 41 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 First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.