HBT Financial (NASDAQ:HBT) and Mid Penn Bancorp (NASDAQ:MPB) Head-To-Head Contrast

HBT Financial (NASDAQ:HBT) and Mid Penn Bancorp (NASDAQ:MPB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

78.6% of HBT Financial shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 51.9% of HBT Financial shares are owned by insiders. Comparatively, 7.2% of Mid Penn Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares HBT Financial and Mid Penn Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HBT Financial	22.72%	13.06%	1.52%
Mid Penn Bancorp	13.95%	8.31%	1.06%

Risk and Volatility

HBT Financial has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Dividends

HBT Financial pays an annual dividend of $0.92 per share and has a dividend yield of 3.2%. Mid Penn Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. HBT Financial pays out 42.2% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 40.0% 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. HBT Financial has increased its dividend for 5 consecutive years. HBT Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for HBT Financial and Mid Penn Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HBT Financial	0	3	3	0	2.50
Mid Penn Bancorp	0	1	1	0	2.50

HBT Financial presently has a consensus target price of $30.75, suggesting a potential upside of 8.01%. Mid Penn Bancorp has a consensus target price of $37.00, suggesting a potential upside of 12.53%. Given Mid Penn Bancorp’s higher possible upside, analysts clearly believe Mid Penn Bancorp is more favorable than HBT Financial.

Earnings and Valuation

This table compares HBT Financial and Mid Penn Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HBT Financial	$293.97 million	3.52	$77.01 million	$2.18	13.06
Mid Penn Bancorp	$350.61 million	2.38	$56.25 million	$2.20	14.95

HBT Financial has higher earnings, but lower revenue than Mid Penn Bancorp. HBT Financial is trading at a lower price-to-earnings ratio than Mid Penn Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

HBT Financial beats Mid Penn Bancorp on 11 of the 16 factors compared between the two stocks.

About HBT Financial

HBT Financial, Inc. operates as the bank holding company for Heartland Bank and Trust Company that provides business, commercial, and retail banking products and services to individuals, businesses, and municipal entities in Central and Northeastern Illinois, and Eastern Iowa. The company's deposits accounts consist of noninterest-bearing demand deposits, interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposits, health savings accounts, and individual retirement accounts. Its loan offering comprises owner and non-owner occupied commercial real estate; construction and land development and multi-family; commercial and industrial; agricultural and farmland; and one-to-four family residential loans, as well as municipal, consumer, and other loans. The company also offers wealth management services, including financial planning to consumers, trusts, and estates; trustee and custodial; investment management; corporate retirement plan consulting and administration; and retail brokerage services. In addition, it provides farmland management, and farmland sales and services; commercial checking accounts; and treasury management services, as well as originates and sells residential mortgage loans. Further, the company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.