Heritage Financial Corporation (HFWA) & The Competition Head-To-Head Comparison

Heritage Financial Corporation (NASDAQ: HFWA) is one of 200 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its competitors? We will compare Heritage Financial Corporation to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares Heritage Financial Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Heritage Financial Corporation $170.13 million $38.91 million 22.01
Heritage Financial Corporation Competitors $341.79 million $72.49 million 19.19

Heritage Financial Corporation’s competitors have higher revenue and earnings than Heritage Financial Corporation. Heritage Financial Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Heritage Financial Corporation pays an annual dividend of $0.52 per share and has a dividend yield of 1.7%. Heritage Financial Corporation pays out 37.4% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.2% of their earnings in the form of a dividend. Heritage Financial Corporation lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

75.3% of Heritage Financial Corporation shares are held by institutional investors. Comparatively, 45.9% of shares of all “Commercial Banks” companies are held by institutional investors. 2.7% of Heritage Financial Corporation shares are held by company insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies 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.

Analyst Recommendations

This is a breakdown of current ratings for Heritage Financial Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Financial Corporation 0 2 1 0 2.33
Heritage Financial Corporation Competitors 363 2862 2310 68 2.37

Heritage Financial Corporation currently has a consensus target price of $30.67, indicating a potential upside of 0.22%. As a group, “Commercial Banks” companies have a potential upside of 6.39%. Given Heritage Financial Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Heritage Financial Corporation has less favorable growth aspects than its competitors.

Volatility and Risk

Heritage Financial Corporation has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Heritage Financial Corporation’s competitors have a beta of 0.73, meaning that their average stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Heritage Financial Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Financial Corporation 23.48% 8.42% 1.05%
Heritage Financial Corporation Competitors 20.18% 8.59% 0.91%

Summary

Heritage Financial Corporation competitors beat Heritage Financial Corporation on 11 of the 15 factors compared.

Heritage Financial Corporation Company Profile

Heritage Financial Corporation is a bank holding company. The Company is engaged in the business of planning, directing and coordinating the business activities of its bank subsidiary, Heritage Bank (the Bank). The Bank’s lending activities focus on commercial business lending. The Bank also originates consumer loans, real estate construction and land development loans, and one- to four-family residential loans. The Bank’s investment securities available for sale include the United States treasury and the United States Government-sponsored agencies; municipal securities; mortgage-backed securities and collateralized mortgage obligations, which include residential and commercial; collateralized loan obligations; corporate obligations, and other securities. The Bank’s primary sources of funds are deposits and loan repayments. Borrowings are used on a short-term basis to compensate for reductions in other sources of funds, such as deposit inflows.

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