Heartland Financial USA (HTLF) and Spirit of Texas Bancshares (STXB) Financial Comparison

Heartland Financial USA (NASDAQ:HTLF) and Spirit of Texas Bancshares (NASDAQ:STXB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Heartland Financial USA and Spirit of Texas Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Financial USA 0 2 1 0 2.33
Spirit of Texas Bancshares 0 0 3 0 3.00

Spirit of Texas Bancshares has a consensus price target of $23.77, indicating a potential upside of 8.57%. Given Spirit of Texas Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Spirit of Texas Bancshares is more favorable than Heartland Financial USA.

Dividends

Heartland Financial USA pays an annual dividend of $0.64 per share and has a dividend yield of 1.3%. Spirit of Texas Bancshares does not pay a dividend. Heartland Financial USA pays out 18.2% of its earnings in the form of a dividend. Heartland Financial USA has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

55.5% of Heartland Financial USA shares are owned by institutional investors. Comparatively, 36.4% of Spirit of Texas Bancshares shares are owned by institutional investors. 6.6% of Heartland Financial USA shares are owned by insiders. Comparatively, 14.0% of Spirit of Texas Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Heartland Financial USA and Spirit of Texas Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heartland Financial USA $574.98 million 2.92 $117.00 million $3.52 13.86
Spirit of Texas Bancshares $67.83 million 3.17 $9.98 million $1.05 20.85

Heartland Financial USA has higher revenue and earnings than Spirit of Texas Bancshares. Heartland Financial USA is trading at a lower price-to-earnings ratio than Spirit of Texas Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Heartland Financial USA and Spirit of Texas Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heartland Financial USA 20.35% 9.79% 1.07%
Spirit of Texas Bancshares 14.71% 8.95% 1.12%

Heartland Financial USA Company Profile

Heartland Financial USA, Inc., a multi-bank holding company, provides commercial, small business, and consumer banking services to individuals and businesses in the United States. It accepts various deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, health savings accounts, and other time deposits. The company also offers commercial and industrial loans; commercial real estate loans; small business loans; agricultural loans; real estate mortgage loans; consumer loans comprising motor vehicle loans, home improvement loans, home equity line of credit, and fixed rate home equity and personal lines of credit; and credit cards for commercial, business, and personal use. In addition, it provides online banking, mobile banking, bill payment, automated clearing house, wire transfer, zero balance account, transaction reporting, lock box, remote deposit capture, accounts receivable, investment sweep account, reconciliation, treasury management, foreign exchange, and various fraud prevention services, as well as commercial purchasing and merchant credit cards, debit cards, and automated teller machines. Further, the company offers investment services, such as mutual funds, annuities, retirement products, education savings products, brokerage services, employer sponsored plans, and insurance products, as well as vehicle, property and casualty, and life and disability insurance products. Additionally, it is involved in the community development, consumer finance, multi-line insurance agency, and property management businesses. The company operates through a network of 118 banking locations in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas, and California. Heartland Financial USA, Inc. was founded in 1981 and is headquartered in Dubuque, Iowa.

Spirit of Texas Bancshares Company Profile

Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts, The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 15 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, the United States. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas.

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