Berkshire Hills Bancorp (NYSE:BHLB) and Home Financial Bancorp (OTCMKTS:HWEN) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Risk and Volatility
Berkshire Hills Bancorp has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Home Financial Bancorp has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.
This table compares Berkshire Hills Bancorp and Home Financial Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Berkshire Hills Bancorp||15.64%||8.33%||1.04%|
|Home Financial Bancorp||N/A||N/A||N/A|
Berkshire Hills Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. Home Financial Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 2.2%. Berkshire Hills Bancorp pays out 38.4% of its earnings in the form of a dividend. Berkshire Hills Bancorp has raised its dividend for 3 consecutive years. Berkshire Hills Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Berkshire Hills Bancorp and Home Financial Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Berkshire Hills Bancorp||$485.95 million||3.16||$55.24 million||$2.29||14.79|
|Home Financial Bancorp||N/A||N/A||$160,000.00||N/A||N/A|
Berkshire Hills Bancorp has higher revenue and earnings than Home Financial Bancorp.
This is a summary of recent recommendations for Berkshire Hills Bancorp and Home Financial Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Berkshire Hills Bancorp||0||4||1||0||2.20|
|Home Financial Bancorp||0||0||0||0||N/A|
Berkshire Hills Bancorp currently has a consensus price target of $40.63, indicating a potential upside of 19.98%. Given Berkshire Hills Bancorp’s higher probable upside, equities analysts plainly believe Berkshire Hills Bancorp is more favorable than Home Financial Bancorp.
Insider and Institutional Ownership
76.1% of Berkshire Hills Bancorp shares are held by institutional investors. 1.6% of Berkshire Hills Bancorp shares are held by insiders. Comparatively, 93.4% of Home Financial Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Berkshire Hills Bancorp beats Home Financial Bancorp on 11 of the 14 factors compared between the two stocks.
About Berkshire Hills Bancorp
Berkshire Hills Bancorp, Inc. operates as a bank holding company for Berkshire Bank that provides various banking products and services. It offers various deposit accounts, including demand deposit, NOW, regular savings, money market savings, time certificates of deposit, and retirement deposit accounts; and loans, such as commercial real estate, commercial and industrial, consumer, and residential mortgage loans. The company also provides wealth management services comprising investment management, trust administration, and estate planning; and investment products, financial planning, and brokerage services. In addition, it provides retail and commercial electronic banking, commercial cash management, online banking, and mobile banking services; interest rate swaps; and debit cards and other electronic fee producing payment services to transaction account customers. Further, the company, through its subsidiary, Berkshire Insurance Group, Inc., offers personal and commercial property, and casualty insurance; employee benefits insurance; and life, health, and financial services insurance products. It serves retail, commercial, not- profit, and municipal deposit customers. As of December 31, 2017, the company operated 113 full-service branches in Massachusetts, New York, Connecticut, Vermont, Central New Jersey, and Eastern Pennsylvania. Berkshire Hills Bancorp, Inc. was founded in 1846 and is headquartered in Boston, Massachusetts.
About Home Financial Bancorp
Home Financial Bancorp operates as a holding company for Our Community Bank that offers various banking products and services in the United States. The company offers various deposits products, including demand deposits, savings accounts, NOW accounts, and money market deposits; commercial and industrial loans, nonresidential real estate loans, and residential, mobile home and land, and consumer loans. It also provides auto and hazard insurance; and Internet banking services. The company provides banking services primarily in Owen, Putnam, and other counties. Home Financial Bancorp was founded in 1911 and is based in Spencer, Indiana.
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