Heritage Financial (NASDAQ:HFWA) and Hingham Institution for Savings (NASDAQ:HIFS) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Heritage Financial and Hingham Institution for Savings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Financial 0 3 0 0 2.00
Hingham Institution for Savings 0 0 0 0 N/A

Heritage Financial currently has a consensus target price of $34.00, indicating a potential upside of 15.72%. Given Heritage Financial’s higher possible upside, analysts plainly believe Heritage Financial is more favorable than Hingham Institution for Savings.

Valuation & Earnings

This table compares Heritage Financial and Hingham Institution for Savings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage Financial $231.02 million 4.69 $53.06 million $1.76 16.69
Hingham Institution for Savings $92.43 million 4.29 $30.40 million N/A N/A

Heritage Financial has higher revenue and earnings than Hingham Institution for Savings.

Profitability

This table compares Heritage Financial and Hingham Institution for Savings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Financial 25.04% 8.77% 1.24%
Hingham Institution for Savings 32.18% 15.35% 1.35%

Insider & Institutional Ownership

81.4% of Heritage Financial shares are held by institutional investors. Comparatively, 32.6% of Hingham Institution for Savings shares are held by institutional investors. 1.6% of Heritage Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Heritage Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.5%. Hingham Institution for Savings pays an annual dividend of $1.52 per share and has a dividend yield of 0.8%. Heritage Financial pays out 40.9% of its earnings in the form of a dividend. Heritage Financial has increased its dividend for 8 consecutive years and Hingham Institution for Savings has increased its dividend for 3 consecutive years. Heritage Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Heritage Financial has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Summary

Heritage Financial beats Hingham Institution for Savings on 9 of the 14 factors compared between the two stocks.

Heritage Financial Company Profile

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to businesses and individuals in the United States. The company accepts various deposit products, such as noninterest demand accounts, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. Its loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial loans focuses on real estate related industries and businesses in agricultural, healthcare, legal, and other professions. The company also originates loans that are guaranteed by the U.S. Small Business Administration; and offers trust services through trust powers, as well as objective advice. As of January 30, 2018, the company had a network of 64 branches located in Washington and Oregon. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.

Hingham Institution for Savings Company Profile

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. The company's deposit products include savings, demand, regular, checking, negotiable order of withdrawal, and money market accounts, as well as certificates of deposit. Its loan portfolio comprises commercial real estate, construction, residential real estate, home equity, commercial, and consumer loans. The company also provides ATM, and telephone and Internet banking services. It serves its customers through a network of 11 offices in Boston and southeastern Massachusetts. The company was founded in 1834 and is headquartered in Hingham, Massachusetts.

Receive News & Ratings for Heritage Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Heritage Financial and related companies with MarketBeat.com's FREE daily email newsletter.