Head to Head Review: Heritage Commerce Corp (HTBK) and The Competition
Heritage Commerce Corp (NASDAQ: HTBK) is one of 207 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its peers? We will compare Heritage Commerce Corp to related companies based on the strength of its risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Heritage Commerce Corp pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Heritage Commerce Corp pays out 54.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend.
Risk and Volatility
Heritage Commerce Corp has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Heritage Commerce Corp’s peers have a beta of 0.74, meaning that their average share price is 26% less volatile than the S&P 500.
Institutional & Insider Ownership
69.5% of Heritage Commerce Corp shares are held by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are held by institutional investors. 5.7% of Heritage Commerce Corp shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Heritage Commerce Corp and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heritage Commerce Corp||0||1||1||0||2.50|
|Heritage Commerce Corp Competitors||380||2897||2373||70||2.37|
Heritage Commerce Corp presently has a consensus target price of $15.50, suggesting a potential upside of 5.01%. As a group, “Commercial Banks” companies have a potential downside of 0.79%. Given Heritage Commerce Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Heritage Commerce Corp is more favorable than its peers.
This table compares Heritage Commerce Corp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Heritage Commerce Corp||25.75%||10.61%||1.07%|
|Heritage Commerce Corp Competitors||19.72%||8.36%||0.88%|
Earnings and Valuation
This table compares Heritage Commerce Corp and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Heritage Commerce Corp||$104.01 million||N/A||20.22|
|Heritage Commerce Corp Competitors||N/A||N/A||25.88|
Heritage Commerce Corp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Heritage Commerce Corp beats its peers on 9 of the 14 factors compared.
Heritage Commerce Corp Company Profile
Heritage Commerce Corp is a bank holding company. The Company, through its subsidiary Heritage Bank of Commerce (the Bank), provides a range of banking services. The Bank is a California state-chartered multi-community independent bank that offers a range of commercial banking services to small and medium-sized businesses and their owners, managers and employees. As of December 31, 2016, the Company operated through 11 service branch offices located in the southern and eastern regions of the general San Francisco Bay Area of California in the counties of Santa Clara, Alameda, Contra Costa and San Benito. The Company’s subsidiary, CSNK Working Capital Finance Corp., doing business as Bay View Funding, provides business-essential working capital factoring financing to various industries across the United States. As of December 31, 2016, the Bank operated automated teller machines (ATMs) at five different locations.
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