Finward Bancorp (OTCMKTS:FNWD) vs. HomeTrust Bancshares (NASDAQ:HTBI) Head-To-Head Review

HomeTrust Bancshares (NASDAQ:HTBIGet Rating) and Finward Bancorp (OTCMKTS:FNWDGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Valuation & Earnings

This table compares HomeTrust Bancshares and Finward Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HomeTrust Bancshares $158.55 million 2.65 $15.53 million $1.38 19.33
Finward Bancorp $66.60 million 2.45 $14.96 million $3.55 10.70

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for HomeTrust Bancshares and Finward Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HomeTrust Bancshares 0 1 0 0 2.00
Finward Bancorp 0 0 1 0 3.00

HomeTrust Bancshares currently has a consensus target price of $32.00, indicating a potential upside of 19.94%. Finward Bancorp has a consensus target price of $56.00, indicating a potential upside of 47.37%. Given Finward Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Finward Bancorp is more favorable than HomeTrust Bancshares.

Profitability

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

Net Margins Return on Equity Return on Assets
HomeTrust Bancshares 14.30% 9.54% 1.08%
Finward Bancorp 18.42% 8.75% 0.79%

Dividends

HomeTrust Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Finward Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 3.3%. HomeTrust Bancshares pays out 26.1% of its earnings in the form of a dividend. Finward Bancorp pays out 34.9% 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. HomeTrust Bancshares has increased its dividend for 3 consecutive years.

Volatility and Risk

HomeTrust Bancshares has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

67.3% of HomeTrust Bancshares shares are held by institutional investors. Comparatively, 11.7% of Finward Bancorp shares are held by institutional investors. 6.6% of HomeTrust Bancshares shares are held by insiders. Comparatively, 15.3% of Finward Bancorp 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.

Summary

HomeTrust Bancshares beats Finward Bancorp on 10 of the 17 factors compared between the two stocks.

HomeTrust Bancshares Company Profile (Get Rating)

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.

Finward Bancorp Company Profile (Get Rating)

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest and interest bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning services, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. As of March 2, 2022, the company operated through 30 locations in Lake and Porter counties in Northwest Indiana and South Chicagoland. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was incorporated in 1994 and is headquartered in Munster, Indiana.

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