Burke & Herbert Financial Services (NASDAQ:BHRB – Get Free Report) and Hawthorn Bancshares (NASDAQ:HWBK – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Dividends
Burke & Herbert Financial Services pays an annual dividend of $2.20 per share and has a dividend yield of 3.1%. Hawthorn Bancshares pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Burke & Herbert Financial Services pays out 35.3% of its earnings in the form of a dividend. Hawthorn Bancshares pays out 22.0% 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. Burke & Herbert Financial Services has increased its dividend for 1 consecutive years and Hawthorn Bancshares has increased its dividend for 5 consecutive years.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Burke & Herbert Financial Services and Hawthorn Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Burke & Herbert Financial Services | 0 | 3 | 2 | 1 | 2.67 |
| Hawthorn Bancshares | 0 | 0 | 1 | 0 | 3.00 |
Institutional and Insider Ownership
30.7% of Hawthorn Bancshares shares are held by institutional investors. 12.0% of Burke & Herbert Financial Services shares are held by company insiders. Comparatively, 22.9% of Hawthorn Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Burke & Herbert Financial Services and Hawthorn Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Burke & Herbert Financial Services | $491.11 million | 2.95 | $117.31 million | $6.24 | 11.49 |
| Hawthorn Bancshares | $84.99 million | 3.18 | $23.80 million | $3.82 | 10.25 |
Burke & Herbert Financial Services has higher revenue and earnings than Hawthorn Bancshares. Hawthorn Bancshares is trading at a lower price-to-earnings ratio than Burke & Herbert Financial Services, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Burke & Herbert Financial Services has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Profitability
This table compares Burke & Herbert Financial Services and Hawthorn Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Burke & Herbert Financial Services | 18.86% | 13.66% | 1.46% |
| Hawthorn Bancshares | 22.77% | 15.15% | 1.42% |
Summary
Burke & Herbert Financial Services beats Hawthorn Bancshares on 10 of the 18 factors compared between the two stocks.
About Burke & Herbert Financial Services
Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.
About Hawthorn Bancshares
Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.
Receive News & Ratings for Burke & Herbert Financial Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Burke & Herbert Financial Services and related companies with MarketBeat.com's FREE daily email newsletter.
