Head-to-head comparison: Hilltop (NYSE: HTH) and Peoples Financial (OTCMKTS: PFBX)



Hill (NYSE: HTHGet a rating) and Peoples Financial (OTCMKTS: PFBXGet a rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Analyst Notes

This is a summary of the current ratings for Hilltop and Peoples Financial, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hill 0 2 0 0 2.00
Peoples Financial 0 0 0 0 N / A

Hilltop currently has a consensus price target of $31.89, indicating a potential upside of 13.41%. Considering Hilltop’s possible higher upside, stock analysts clearly believe that Hilltop is more favorable than Peoples Financial.

Volatility and risk

Hilltop has a beta of 1.09, suggesting its stock price is 9% more volatile than the S&P 500. In comparison, Peoples Financial has a beta of 0.54, suggesting its stock price is 46% less volatile than the S&P 500.

Dividends

Hilltop pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Peoples Financial pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. Hilltop pays 17.5% of its earnings as a dividend. Peoples Financial pays 16.8% of its profits in the form of dividends. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Hilltop has increased its dividend for 5 consecutive years and Peoples Financial has increased its dividend for 2 consecutive years. Hilltop is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of Hilltop and Peoples Financial.

Net margins Return on equity return on assets
Hill 16.15% 11.01% 1.52%
Peoples Financial 19.02% 5.79% 0.61%

Institutional and Insider Ownership

63.5% of Hilltop shares are held by institutional investors. By comparison, 11.4% of Peoples Financial’s stock is held by institutional investors. 22.3% of Hilltop shares are held by insiders. By comparison, 28.1% of Peoples Financial’s stock is held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Benefits and evaluation

This chart compares the revenue, earnings per share, and valuation of Hilltop and Peoples Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hill $1.94 billion 1.15 $374.49 million $3.42 8.22
Peoples Financial $26.76 million 2.80 $8.58 million $1.07 14.94

Hilltop has higher revenue and profit than Peoples Financial. Hilltop trades at a lower price-to-earnings ratio than Peoples Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Hilltop beats Peoples Financial on 10 out of 15 factors compared between the two stocks.

About Hilltop (Get a rating)

Hilltop Holdings Inc. provides corporate and personal banking, financial products and services. It operates through three segments: Banking, Broker-Dealer and Mortgage Origination. The 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, securities purchase and transportation loans, equipment loans and leases, agricultural and commercial real estate loans and other loans; and commercial and industrial loans, and term and construction financing. This segment also provides cash management, wealth management, asset management, check card, safety deposit box, online banking, bill payment, trust and overdraft services; and estate planning, management and administration, management of investment portfolios, employee benefit accounts and individual retirement accounts, and automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in creating, syndicating and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance on arbitrage rebate compliance, portfolio management and local government investment pool administration; structured finance services, which include advisory services for derivatives and commodities; sells, trades and supports US government and agency bonds, corporate bonds and municipal bonds, as well as mortgage, asset and commercial mortgage-backed securities and products structured. This segment also provides asset and liability management advisory, clearing, retail and securities lending services. The Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veterans Affairs and United States Department of Agriculture loans. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

About Peoples Financial (Get a rating)

Peoples Financial logoPeoples Financial Corporation operates as a bank holding company for The Peoples Bank which provides banking, financial and trust services to government entities, individuals and small businesses and commercial enterprises in Mississippi. It accepts various deposits, such as interest-bearing and interest-free checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). The company also offers business, commercial, real estate, construction, personal and installment loans; and personal trust, estate agencies and services, including living and testamentary trusts, executors, guardianships and guardianships. Additionally, it provides self-directed IRAs; and managing escrow, stock transfer and bond payment agency accounts to corporate clients. In addition, the Company offers various other services including safe deposit box rental, wire transfers, night deposit facilities, collection, cash management and internet banking. As of December 31, 2021, the company operated through 17 branches located in Harrison, Hancock, Jackson and Stone counties. It also has 28 ATMs in its branches, as well as other offsite and non-proprietary locations. The company was founded in 1896 and is based in Biloxi, Mississippi.



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