Contrasting Truist Financial (NYSE:TFC) & HBT Financial (NASDAQ:HBT)

Truist Financial (NYSE:TFC) and HBT Financial (NASDAQ:HBT) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

This table compares Truist Financial and HBT Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Truist Financial	18.01%	10.37%	1.10%
HBT Financial	23.44%	13.46%	1.55%

Analyst Recommendations

This is a summary of recent recommendations for Truist Financial and HBT Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truist Financial	2	9	7	0	2.28
HBT Financial	0	2	3	2	3.00

Truist Financial currently has a consensus price target of $53.87, indicating a potential upside of 10.22%. HBT Financial has a consensus price target of $37.40, indicating a potential upside of 0.51%. Given Truist Financial’s higher probable upside, equities analysts clearly believe Truist Financial is more favorable than HBT Financial.

Institutional & Insider Ownership

71.3% of Truist Financial shares are held by institutional investors. Comparatively, 78.5% of HBT Financial shares are held by institutional investors. 0.2% of Truist Financial shares are held by company insiders. Comparatively, 51.9% of HBT Financial shares are held by company 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.

Earnings & Valuation

This table compares Truist Financial and HBT Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truist Financial	$30.44 billion	1.96	$5.31 billion	$3.88	12.60
HBT Financial	$293.97 million	4.60	$77.01 million	$2.33	15.97

Truist Financial has higher revenue and earnings than HBT Financial. Truist Financial is trading at a lower price-to-earnings ratio than HBT Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.3%. HBT Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Truist Financial pays out 53.6% of its earnings in the form of a dividend. HBT Financial pays out 42.9% 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. HBT Financial has raised its dividend for 5 consecutive years.

Risk and Volatility

Truist Financial has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, HBT Financial has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Summary

HBT Financial beats Truist Financial on 11 of the 18 factors compared between the two stocks.

About Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.

About HBT Financial

HBT Financial, Inc. operates as the bank holding company for Heartland Bank and Trust Company that provides business, commercial, and retail banking products and services to individuals, businesses, and municipal entities in Central and Northeastern Illinois, and Eastern Iowa. The company's deposits accounts consist of noninterest-bearing demand deposits, interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposits, health savings accounts, and individual retirement accounts. Its loan offering comprises owner and non-owner occupied commercial real estate; construction and land development and multi-family; commercial and industrial; agricultural and farmland; and one-to-four family residential loans, as well as municipal, consumer, and other loans. The company also offers wealth management services, including financial planning to consumers, trusts, and estates; trustee and custodial; investment management; corporate retirement plan consulting and administration; and retail brokerage services. In addition, it provides farmland management, and farmland sales and services; commercial checking accounts; and treasury management services, as well as originates and sells residential mortgage loans. Further, the company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois.