Umpqua (NASDAQ: UMPQ – Get Rating) and HomeTrust Bancshares (NASDAQ: HTBI – Get Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability:
This table compares Umpqua and HomeTrust Bancshares’ net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Umpqua: | 31.34% | 14.89% | 1.32% |
| HomeTrust Bancshares: | 14.30% | 9.53% | 1.08% |
Insider & Institutional Ownership:
87.6% of Umpqua shares are owned by institutional investors. Comparatively, 67.3% of HomeTrust Bancshares shares are owned by institutional investors. 0.6% of Umpqua shares are owned by insiders. Comparatively, 6.6% of HomeTrust Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk:
Umpqua has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, HomeTrust Bancshares has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Analyst Recommendations:
This is a summary of current recommendations for Umpqua and HomeTrust Bancshares, as provided by MarketBeat.com.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Umpqua: | 0: | 5: | 0: | 0: | 2.00: |
| HomeTrust Bancshares: | 0: | 1: | 0: | 0: | 2.00: |
Umpqua presently has a consensus price target of $ 19.88, indicating a potential upside of 21.49%. HomeTrust Bancshares has a consensus price target of $ 32.00, indicating a potential upside of 28.00%. Given HomeTrust Bancshares’ higher possible upside, analysts clearly believe HomeTrust Bancshares is more favorable than Umpqua.
Dividends:
Umpqua pays an annual dividend of $ 0.84 per share and has a dividend yield of 5.1%. HomeTrust Bancshares pays an annual dividend of $ 0.36 per share and has a dividend yield of 1.4%. Umpqua pays out 45.4% of its earnings in the form of a dividend. HomeTrust Bancshares pays out 26.1% 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.
Earnings & Valuation:
This table compares Umpqua and HomeTrust Bancshares’ gross revenue, earnings per share and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Umpqua: | $ 1.32 billion: | 2.69: | $ 420.30 million: | $ 1.85: | 8.84: |
| HomeTrust Bancshares: | $ 158.55 million: | 2.48: | $ 15.53 million: | $ 1.38: | 18.12: |
Umpqua has higher revenue and earnings than HomeTrust Bancshares. Umpqua is trading at a lower price-to-earnings ratio than HomeTrust Bancshares, indicating that it is currently the most affordable of the two stocks.
Summary:
Umpqua beats HomeTrust Bancshares on 10 of the 15 factors compared between the two stocks.
About Umpqua: (Get Rating)
Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking services. It operates in two segments: Core Banking and Mortgage Banking. The company offers deposit products, including non-interest bearing checking, interest bearing checking and savings, and money market accounts, as well as certificates of deposit. It also provides loans for corporate and commercial customers, such as accounts receivable and inventory financing, multi-family and equipment loans, commercial equipment leases, international trade finance, real estate construction loans, permanent financing, and small business administration program financing, as well as capital markets and treasury management products. In addition, the company offers loan products, such as commercial and industrial loans; residential real estate loans for the construction, purchase, and refinancing of residential owner-occupied and rental properties; and consumer loans comprising secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Further, it provides financial planning solutions; and online and mobile banking services. The company serves high net worth individuals and families, select non-profits, and professional services firms. As of December 31, 2021, it conducted commercial and retail banking activities at 234 locations, including 202 store locations in Oregon, Washington, California, Idaho, and Nevada; and operated 28 facilities for the purpose of administrative and other functions, such as back-office support, of which two are owned and 26 are leased. The company was founded in 1953 and is headquartered in Portland, Oregon.
About HomeTrust Bancshares: (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 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.
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