Critical Comparison: HomeTrust Bancshares (HTB) and The Competition

HomeTrust Bancshares (NYSE:HTB) is one of 925 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare HomeTrust Bancshares to similar companies based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Profitability

This table compares HomeTrust Bancshares and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HomeTrust Bancshares	22.50%	10.88%	1.45%
HomeTrust Bancshares Competitors	14.93%	9.46%	0.92%

Analyst Ratings

This is a summary of recent recommendations and price targets for HomeTrust Bancshares and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomeTrust Bancshares	0	2	2	1	2.80
HomeTrust Bancshares Competitors	7357	29660	27065	1357	2.34

HomeTrust Bancshares presently has a consensus target price of $52.00, suggesting a potential upside of 9.79%. As a group, “Banks” companies have a potential upside of 10.49%. Given HomeTrust Bancshares’ peers higher possible upside, analysts clearly believe HomeTrust Bancshares has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares HomeTrust Bancshares and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
HomeTrust Bancshares	$215.08 million	$64.36 million	12.43
HomeTrust Bancshares Competitors	$62.15 billion	$2.39 billion	22.55

HomeTrust Bancshares’ peers have higher revenue and earnings than HomeTrust Bancshares. HomeTrust Bancshares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

HomeTrust Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. HomeTrust Bancshares pays out 15.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 29.0% of their earnings in the form of a dividend.

Risk & Volatility

HomeTrust Bancshares has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, HomeTrust Bancshares’ peers have a beta of 0.59, indicating that their average share price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

60.9% of HomeTrust Bancshares shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Banks” companies are owned by institutional investors. 11.0% of HomeTrust Bancshares shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

HomeTrust Bancshares beats its peers on 9 of the 15 factors compared.

HomeTrust Bancshares Company Profile

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company’s loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. It also provides small business administration loans, equipment finance leases, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services. As of June 30, 2021, the company operated 41 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.