Hometrust Bancshares (NASDAQ: HTBI) and First Connecticut Bancorp (NASDAQ:FBNK) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Valuation & Earnings

This table compares Hometrust Bancshares and First Connecticut Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hometrust Bancshares $114.88 million 4.19 $11.72 million $0.73 34.79
First Connecticut Bancorp $99.72 million 4.21 $15.21 million $1.26 20.87

First Connecticut Bancorp has lower revenue, but higher earnings than Hometrust Bancshares. First Connecticut Bancorp is trading at a lower price-to-earnings ratio than Hometrust Bancshares, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Hometrust Bancshares has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, First Connecticut Bancorp has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

60.3% of Hometrust Bancshares shares are owned by institutional investors. Comparatively, 49.5% of First Connecticut Bancorp shares are owned by institutional investors. 6.3% of Hometrust Bancshares shares are owned by company insiders. Comparatively, 10.7% of First Connecticut Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

First Connecticut Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Hometrust Bancshares does not pay a dividend. First Connecticut Bancorp pays out 47.6% of its earnings in the form of a dividend.

Profitability

This table compares Hometrust Bancshares and First Connecticut Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hometrust Bancshares 11.28% 4.71% 0.59%
First Connecticut Bancorp 18.24% 7.43% 0.68%

Analyst Ratings

This is a summary of current ratings and recommmendations for Hometrust Bancshares and First Connecticut Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hometrust Bancshares 0 2 1 0 2.33
First Connecticut Bancorp 0 1 0 0 2.00

Hometrust Bancshares presently has a consensus target price of $28.00, suggesting a potential upside of 10.24%. First Connecticut Bancorp has a consensus target price of $26.00, suggesting a potential downside of 1.14%. Given Hometrust Bancshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Hometrust Bancshares is more favorable than First Connecticut Bancorp.

Summary

First Connecticut Bancorp beats Hometrust Bancshares on 9 of the 16 factors compared between the two stocks.

Hometrust Bancshares Company Profile

HomeTrust Bancshares, Inc. is a bank holding company of HomeTrust Bank (the Bank). The Bank’s principal business consists of attracting deposits from the public and investing those funds, along with borrowed funds, in loans secured primarily by first and second mortgages on one- to four-family residences, including home equity loans, construction and land/lot loans, commercial real estate loans, construction and development loans, commercial and industrial loans, indirect automobile, and municipal leases. Municipal leases are secured primarily by a ground lease for a firehouse or an equipment lease for fire trucks and firefighting equipment to fire departments located throughout North and South Carolina. The Company purchases investment securities consisting primarily of securities issued by the United States Government agencies and government-sponsored enterprises, as well as certificates of deposit insured by the Federal Deposit Insurance Corporation (FDIC).

First Connecticut Bancorp Company Profile

First Connecticut Bancorp, Inc. (FCB) is a stock holding company. The Company operates through its subsidiary, Farmington Bank (the Bank), which is a full-service community bank with branch locations throughout central Connecticut and western Massachusetts. The Bank offers commercial and residential lending, as well as wealth management services. The Bank’s lending activities include residential, consumer and commercial lending. The Bank’s lending activities consists of the origination of one- to four-family residential real estate loans that are secured by properties located in Hartford County and surrounding counties in Connecticut. The Company offers a selection of deposit instruments, including checking, savings, money market savings accounts, negotiable order of withdrawal (NOW) accounts and fixed-rate time deposits.

Receive News & Ratings for Hometrust Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hometrust Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.