Hilltop (HTH) vs. Its Competitors Financial Review

Hilltop (NYSE: HTH) is one of 252 public companies in the “State commercial banks” industry, but how does it contrast to its rivals? We will compare Hilltop to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Analyst Recommendations

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This is a summary of current ratings and target prices for Hilltop and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilltop 2 3 1 0 1.83
Hilltop Competitors 902 4561 3870 170 2.35

Hilltop currently has a consensus price target of $35.83, suggesting a potential upside of 52.03%. As a group, “State commercial banks” companies have a potential upside of 8.31%. Given Hilltop’s higher probable upside, research analysts clearly believe Hilltop is more favorable than its rivals.

Dividends

Hilltop pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Hilltop pays out 16.9% of its earnings in the form of a dividend. As a group, “State commercial banks” companies pay a dividend yield of 1.9% and pay out 33.7% of their earnings in the form of a dividend.

Risk and Volatility

Hilltop has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Hilltop’s rivals have a beta of 0.62, indicating that their average share price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

60.2% of Hilltop shares are owned by institutional investors. Comparatively, 46.0% of shares of all “State commercial banks” companies are owned by institutional investors. 22.6% of Hilltop shares are owned by company insiders. Comparatively, 11.5% of shares of all “State commercial banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hilltop and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hilltop $1.71 billion $132.54 million 14.20
Hilltop Competitors $1.47 billion $221.76 million 18.89

Hilltop has higher revenue, but lower earnings than its rivals. Hilltop is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Hilltop and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilltop 7.74% 8.46% 1.23%
Hilltop Competitors 17.69% 7.69% 0.71%

Summary

Hilltop beats its rivals on 8 of the 15 factors compared.

About Hilltop

Hilltop Holdings Inc. provides banking and financial products and services. Its Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial, industrial, and single family residential mortgage loans. This segment also provides term and construction finance; check cards and safe deposit boxes; treasury management, Internet banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, and investment portfolio management services, as well as employee benefit and individual retirement accounts. The company's Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed and asset-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The company's Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veteran Affairs, and United States Department of Agriculture loans. Its Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, flood, and vacant policies; and commercial lines, such as commercial multi-peril, builders risk, builders risk renovation, sports liability, and inland marine policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, Maryland, North Carolina, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

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