Head-To-Head Comparison: Heritage Financial Corporation (HFWA) vs. Its Competitors
Heritage Financial Corporation (NASDAQ: HFWA) is one of 200 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its peers? We will compare Heritage Financial Corporation to similar companies based on the strength of its risk, earnings, valuation, analyst recommendations, institutional ownership, dividends and profitability.
This is a breakdown of current ratings and price targets for Heritage Financial Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heritage Financial Corporation||0||2||1||0||2.33|
|Heritage Financial Corporation Competitors||363||2866||2316||68||2.37|
Heritage Financial Corporation currently has a consensus price target of $30.67, indicating a potential downside of 1.08%. As a group, “Commercial Banks” companies have a potential upside of 5.72%. Given Heritage Financial Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe Heritage Financial Corporation has less favorable growth aspects than its peers.
Heritage Financial Corporation pays an annual dividend of $0.52 per share and has a dividend yield of 1.7%. Heritage Financial Corporation pays out 37.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.3% of their earnings in the form of a dividend. Heritage Financial Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Insider and Institutional Ownership
74.7% of Heritage Financial Corporation shares are owned by institutional investors. Comparatively, 46.1% of shares of all “Commercial Banks” companies are owned by institutional investors. 2.7% of Heritage Financial Corporation shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Heritage Financial Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Heritage Financial Corporation||$170.13 million||$38.91 million||22.46|
|Heritage Financial Corporation Competitors||$341.79 million||$72.49 million||21.18|
Heritage Financial Corporation’s peers have higher revenue and earnings than Heritage Financial Corporation. Heritage Financial Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
Heritage Financial Corporation has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Heritage Financial Corporation’s peers have a beta of 0.74, meaning that their average stock price is 26% less volatile than the S&P 500.
This table compares Heritage Financial Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Heritage Financial Corporation||23.48%||8.42%||1.05%|
|Heritage Financial Corporation Competitors||20.46%||8.66%||0.92%|
Heritage Financial Corporation peers beat Heritage Financial Corporation on 11 of the 15 factors compared.
About Heritage Financial Corporation
Heritage Financial Corporation is a bank holding company. The Company is engaged in the business of planning, directing and coordinating the business activities of its bank subsidiary, Heritage Bank (the Bank). The Bank’s lending activities focus on commercial business lending. The Bank also originates consumer loans, real estate construction and land development loans, and one- to four-family residential loans. The Bank’s investment securities available for sale include the United States treasury and the United States Government-sponsored agencies; municipal securities; mortgage-backed securities and collateralized mortgage obligations, which include residential and commercial; collateralized loan obligations; corporate obligations, and other securities. The Bank’s primary sources of funds are deposits and loan repayments. Borrowings are used on a short-term basis to compensate for reductions in other sources of funds, such as deposit inflows.
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