Comparing HomeTrust Bancshares (NYSE:HTB) and German American Bancorp (NASDAQ:GABC)

German American Bancorp (NASDAQ:GABC) and HomeTrust Bancshares (NYSE:HTB) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Dividends

German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. HomeTrust Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. German American Bancorp pays out 32.7% of its earnings in the form of a dividend. HomeTrust Bancshares pays out 15.7% 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. German American Bancorp has increased its dividend for 13 consecutive years. German American Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

46.9% of German American Bancorp shares are held by institutional investors. Comparatively, 60.9% of HomeTrust Bancshares shares are held by institutional investors. 3.2% of German American Bancorp shares are held by insiders. Comparatively, 11.0% of HomeTrust Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares German American Bancorp and HomeTrust Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
German American Bancorp	$386.18 million	4.80	$112.64 million	$3.79	13.00
HomeTrust Bancshares	$292.47 million	2.66	$64.36 million	$3.81	12.23

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for German American Bancorp and HomeTrust Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	2	2	1	2.80
HomeTrust Bancshares	0	2	2	1	2.80

German American Bancorp presently has a consensus price target of $53.33, suggesting a potential upside of 8.23%. HomeTrust Bancshares has a consensus price target of $52.00, suggesting a potential upside of 11.62%. Given HomeTrust Bancshares’ higher possible upside, analysts plainly believe HomeTrust Bancshares is more favorable than German American Bancorp.

Profitability

This table compares German American Bancorp and HomeTrust Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	28.25%	12.14%	1.69%
HomeTrust Bancshares	22.50%	10.88%	1.45%

Risk and Volatility

German American Bancorp has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, HomeTrust Bancshares has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

German American Bancorp beats HomeTrust Bancshares on 9 of the 15 factors compared between the two stocks.

About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

About HomeTrust Bancshares

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.