LINKBANCORP (NASDAQ:LNKB) & Hawthorn Bancshares (NASDAQ:HWBK) Critical Survey

LINKBANCORP (NASDAQ:LNKB) and Hawthorn Bancshares (NASDAQ:HWBK) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares LINKBANCORP and Hawthorn Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LINKBANCORP	20.81%	10.28%	1.03%
Hawthorn Bancshares	20.09%	14.22%	1.18%

Volatility and Risk

LINKBANCORP has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

37.5% of LINKBANCORP shares are owned by institutional investors. Comparatively, 30.7% of Hawthorn Bancshares shares are owned by institutional investors. 37.5% of LINKBANCORP shares are owned by company insiders. Comparatively, 22.7% of Hawthorn Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares LINKBANCORP and Hawthorn Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LINKBANCORP	$113.21 million	2.88	$26.21 million	$1.02	8.52
Hawthorn Bancshares	$109.67 million	2.29	$18.26 million	$3.19	11.43

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

Analyst Ratings

This is a breakdown of current ratings and price targets for LINKBANCORP and Hawthorn Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LINKBANCORP	0	2	0	1	2.67
Hawthorn Bancshares	0	1	0	0	2.00

LINKBANCORP presently has a consensus price target of $9.63, suggesting a potential upside of 10.76%. Given LINKBANCORP’s stronger consensus rating and higher possible upside, equities research analysts plainly believe LINKBANCORP is more favorable than Hawthorn Bancshares.

Dividends

LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 3.5%. Hawthorn Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. LINKBANCORP pays out 29.4% of its earnings in the form of a dividend. Hawthorn Bancshares pays out 25.1% 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. Hawthorn Bancshares has raised its dividend for 5 consecutive years.

Summary

LINKBANCORP beats Hawthorn Bancshares on 10 of the 17 factors compared between the two stocks.

About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.

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.