Heritage Commerce Corp (NASDAQ: HTBK) is one of 207 public companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare Heritage Commerce Corp to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Heritage Commerce Corp and its rivals, 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 387 2958 2410 70 2.37

Heritage Commerce Corp currently has a consensus price target of $15.50, suggesting a potential upside of 6.16%. As a group, “Commercial Banks” companies have a potential upside of 1.61%. Given Heritage Commerce Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Heritage Commerce Corp is more favorable than its rivals.

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 35.5% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Heritage Commerce Corp and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Heritage Commerce Corp $104.01 million N/A 20.00
Heritage Commerce Corp Competitors N/A N/A 25.42

Heritage Commerce Corp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Heritage Commerce Corp has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Heritage Commerce Corp’s rivals have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Profitability

This table compares Heritage Commerce Corp and its rivals’ 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 19.84% 8.42% 0.89%

Institutional & Insider Ownership

69.5% of Heritage Commerce Corp shares are held by institutional investors. Comparatively, 46.6% of shares of all “Commercial Banks” companies are held by institutional investors. 5.7% of Heritage Commerce Corp shares are held by company insiders. Comparatively, 11.6% of shares of all “Commercial Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Heritage Commerce Corp beats its rivals on 9 of the 14 factors compared.

About Heritage Commerce Corp

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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