Hancock (HBHC) & Reliant Bancorp (RBNC) Financial Analysis

Hancock (NASDAQ: HBHC) and Reliant Bancorp (NASDAQ:RBNC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Hancock and Reliant Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hancock 18.46% 8.96% 0.96%
Reliant Bancorp 15.69% 7.27% 0.87%

Dividends

Hancock pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Reliant Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Hancock pays out 38.6% of its earnings in the form of a dividend. Reliant Bancorp pays out 27.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of current ratings for Hancock and Reliant Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hancock 0 3 4 1 2.75
Reliant Bancorp 0 1 1 0 2.50

Hancock currently has a consensus target price of $56.86, suggesting a potential upside of 9.55%. Reliant Bancorp has a consensus target price of $25.25, suggesting a potential upside of 5.34%. Given Hancock’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hancock is more favorable than Reliant Bancorp.

Institutional and Insider Ownership

77.2% of Hancock shares are held by institutional investors. Comparatively, 22.1% of Reliant Bancorp shares are held by institutional investors. 1.2% of Hancock shares are held by insiders. Comparatively, 12.5% of Reliant Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Hancock has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Reliant Bancorp has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hancock and Reliant Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hancock $1.17 billion 3.78 $215.63 million $2.49 20.84
Reliant Bancorp $46.17 million 5.94 $7.25 million $0.89 26.93

Hancock has higher revenue and earnings than Reliant Bancorp. Hancock is trading at a lower price-to-earnings ratio than Reliant Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Hancock beats Reliant Bancorp on 13 of the 17 factors compared between the two stocks.

About Hancock

Hancock Holding Company is a financial services company that provides a network of service financial choices to the Gulf South region, through its bank subsidiary, Whitney Bank (the Bank), a Mississippi state bank. The Company operates through overall banking operations segment. The Bank operates under brands, such as Hancock Bank in Mississippi, Alabama and Florida, and Whitney Bank in Louisiana and Texas. The Bank operates across the Gulf South region, which consists of southern Mississippi; southern and central Alabama; southern Louisiana; the northern, central, and panhandle regions of Florida; Houston, Texas, and Nashville, Tennessee. The Bank offers a range of traditional and online community banking services to commercial, small business and retail customers, providing a range of transaction and savings deposit products, treasury management services and investment brokerage services, among others.

About Reliant Bancorp

Reliant Bancorp, Inc., formerly Commerce Union Bancshares, Inc., serves as the bank holding company for Reliant Bank. The Company has two segments: Retail Banking and Residential Mortgage Banking. Retail Banking provides deposit and lending services to consumer and business customers within its primary geographic markets. Its customers are serviced through branch locations, automated teller machines (ATMs), online banking and mobile banking. Residential Mortgage Banking originates first lien residential mortgage loans throughout the United States. These loans are typically underwritten to government agency standards and sold to third-party secondary market mortgage investors. Reliant Bank provides a range of traditional banking services throughout the Middle Tennessee Region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Reliant Bank provides commercial banking services for businesses and individuals.

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