Heritage Commerce Corp (NASDAQ: HTBK) is one of 210 public companies in the “Commercial Banks” industry, but how does it compare to its rivals? We will compare Heritage Commerce Corp to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Heritage Commerce Corp $106.06 million $27.38 million 20.04
Heritage Commerce Corp Competitors $343.33 million $72.29 million 18.77

Heritage Commerce Corp’s rivals have higher revenue and earnings than Heritage Commerce Corp. Heritage Commerce Corp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Heritage Commerce Corp has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Heritage Commerce Corp’s rivals have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Heritage Commerce Corp and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Commerce Corp 0 1 1 0 2.50
Heritage Commerce Corp Competitors 357 2836 2305 66 2.37

Heritage Commerce Corp presently has a consensus price target of $15.50, indicating a potential upside of 0.45%. As a group, “Commercial Banks” companies have a potential upside of 3.82%. Given Heritage Commerce Corp’s rivals higher probable upside, analysts plainly believe Heritage Commerce Corp has less favorable growth aspects than its rivals.

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 26.40% 11.27% 1.12%
Heritage Commerce Corp Competitors 20.65% 8.78% 0.93%

Dividends

Heritage Commerce Corp pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Heritage Commerce Corp pays out 51.9% 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 34.3% of their earnings in the form of a dividend.

Institutional and Insider Ownership

69.5% of Heritage Commerce Corp shares are owned by institutional investors. Comparatively, 46.2% of shares of all “Commercial Banks” companies are owned by institutional investors. 5.7% of Heritage Commerce Corp shares are owned by company insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Heritage Commerce Corp beats its rivals on 8 of the 15 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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