Heritage Financial Group (HBOS) versus Financial Institutions (FISI) Financial Contrast

Heritage Financial Group (NASDAQ: HBOS) and Financial Institutions (NASDAQ:FISI) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

75.0% of Financial Institutions shares are owned by institutional investors. 5.5% of Financial Institutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.


This table compares Heritage Financial Group and Financial Institutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Financial Group 12.90% 9.62% 0.89%
Financial Institutions 20.34% 9.31% 0.78%


Financial Institutions pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Heritage Financial Group does not pay a dividend. Financial Institutions pays out 41.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Heritage Financial Group and Financial Institutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Financial Group 0 0 0 0 N/A
Financial Institutions 0 2 1 0 2.33

Financial Institutions has a consensus price target of $33.50, suggesting a potential upside of 5.18%. Given Financial Institutions’ higher probable upside, analysts clearly believe Financial Institutions is more favorable than Heritage Financial Group.

Risk and Volatility

Heritage Financial Group has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Financial Institutions has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares Heritage Financial Group and Financial Institutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage Financial Group N/A N/A N/A $1.19 25.36
Financial Institutions $164.84 million 3.02 $33.53 million $2.12 15.02

Financial Institutions has higher revenue and earnings than Heritage Financial Group. Financial Institutions is trading at a lower price-to-earnings ratio than Heritage Financial Group, indicating that it is currently the more affordable of the two stocks.


Financial Institutions beats Heritage Financial Group on 9 of the 13 factors compared between the two stocks.

About Heritage Financial Group

Heritage Financial Group, Inc. (Heritage) is a bank holding company. Heritage conducts commercial banking, retail banking, mortgage banking and wealth management activities through its wholly owned subsidiary, HeritageBank of the South (the Bank). As of December 31, 2014, the Bank operated in Georgia, Florida and Alabama through 36 banking locations, 21 mortgage offices, and 5 investment offices. The Bank provides credit based products, deposit accounts, corporate cash management, investment support and other services to commercial and retail clients. As of December 31, 2014, the Company had total assets of $1.7 billion. The Company offers various types of loans, including, residential real estate loans; commercial real estate loans; construction and land loans; commercial and industrial loans, and consumer and other loans.

About Financial Institutions

Financial Institutions, Inc. is a financial holding company. The Company conducts its business through its subsidiaries: Five Star Bank (the Bank), a New York chartered bank; Scott Danahy Naylon, LLC (SDN), a full service insurance agency, and Courier Capital, LLC (Courier Capital), an investment advisory and wealth management company. The Company operates through two segments: Banking and Non-Banking. The Banking segment includes all of the Company’s retail and commercial banking operations. The Non-Banking segment includes the activities of SDN and Courier Capital. The Company offers a range of banking and related financial services to consumer, commercial and municipal customers through its bank and nonbank subsidiaries. The Company’s indirect lending network includes relationships with franchised automobile dealers in Western and Central New York, the Capital District of New York and Northern and Central Pennsylvania.

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