Level One Bancorp (NYSE: HTH) and Hilltop (NYSE:HTH) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Earnings and Valuation

This table compares Level One Bancorp and Hilltop’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Level One Bancorp N/A N/A N/A N/A N/A
Hilltop $1.71 billion 1.13 $132.54 million $1.66 12.29

Hilltop has higher revenue and earnings than Level One Bancorp.

Insider and Institutional Ownership

36.8% of Level One Bancorp shares are owned by institutional investors. Comparatively, 59.4% of Hilltop shares are owned by institutional investors. 22.3% of Hilltop shares are owned 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.

Profitability

This table compares Level One Bancorp and Hilltop’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Level One Bancorp N/A N/A N/A
Hilltop 6.17% 6.76% 0.96%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Level One Bancorp and Hilltop, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Level One Bancorp 0 1 2 0 2.67
Hilltop 0 2 1 0 2.33

Level One Bancorp currently has a consensus price target of $32.00, indicating a potential upside of 14.08%. Hilltop has a consensus price target of $26.67, indicating a potential upside of 30.72%. Given Hilltop’s higher probable upside, analysts clearly believe Hilltop is more favorable than Level One Bancorp.

Dividends

Level One Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Hilltop pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Hilltop pays out 16.9% of its earnings in the form of a dividend.

Summary

Hilltop beats Level One Bancorp on 8 of the 11 factors compared between the two stocks.

About Level One Bancorp

Level One Bancorp, Inc. operates as a bank holding company for Level One Bank that provides business and consumer financial services in Michigan. It offers a range of deposit services, including checking accounts, NOW accounts, savings, other time deposits, certificates of deposit, and specialty deposit accounts. The company also provides lending products and related services comprising commercial mortgages; commercial and industrial loans with lines of credit, term loans, and owner occupied mortgages to small businesses; loans under the SBA lending program; residential real estate loans; construction and land development loans; and consumer loans, including home equity loans and automobile loans, as well as credit card services. In addition, it offers cash management services, treasury management services, and mobile banking services. The company serves individuals, owner-managed businesses, professional firms, real estate professionals, and not-for-profit businesses. It operate through 14 offices, including 12 full-service banking centers located in southeastern Michigan; and a mortgage loan production office in Ann Arbor, Michigan. Level One Bancorp, Inc. was founded in 2007 and is headquartered in Farmington Hills, Michigan.

About Hilltop

Hilltop Holdings Inc. provides banking and financial products and services. Its Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial, industrial, and single family residential mortgage loans. This segment also provides term and construction finance; check cards and safe deposit boxes; treasury management, Internet banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, and investment portfolio management services, as well as employee benefit and individual retirement accounts. The company's Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed and asset-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The company's Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veteran Affairs, and United States Department of Agriculture loans. Its Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, flood, and vacant policies; and commercial lines, such as commercial multi-peril, builders risk, builders risk renovation, sports liability, and inland marine policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, Maryland, North Carolina, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

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