Heritage Financial (NASDAQ:HFWA – Get Free Report) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Heritage Financial to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.
Dividends
Heritage Financial pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Heritage Financial pays out 49.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Heritage Financial has raised its dividend for 14 consecutive years. Heritage Financial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation & Earnings
This table compares Heritage Financial and its competitors top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Heritage Financial | $335.97 million | $67.53 million | 14.25 |
| Heritage Financial Competitors | $9.95 billion | $2.42 billion | 21.49 |
Heritage Financial’s competitors have higher revenue and earnings than Heritage Financial. Heritage Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
Heritage Financial has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Heritage Financial’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Heritage Financial and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heritage Financial | 0 | 4 | 4 | 0 | 2.50 |
| Heritage Financial Competitors | 7484 | 30232 | 27813 | 1478 | 2.35 |
Heritage Financial presently has a consensus price target of $32.67, suggesting a potential upside of 14.06%. As a group, “Banks” companies have a potential upside of 14.18%. Given Heritage Financial’s competitors higher possible upside, analysts plainly believe Heritage Financial has less favorable growth aspects than its competitors.
Profitability
This table compares Heritage Financial and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heritage Financial | 19.24% | 8.70% | 1.14% |
| Heritage Financial Competitors | 15.65% | 9.43% | 0.93% |
Insider and Institutional Ownership
78.3% of Heritage Financial shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 1.5% of Heritage Financial shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Heritage Financial competitors beat Heritage Financial on 10 of the 15 factors compared.
About Heritage Financial
Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. It accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. The company’s loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries that include real estate and rental and leasing, healthcare, accommodation and food services, retail trade, and construction. It also originates loans that are guaranteed by the U.S. Small Business Administration; and provides objective advice from trusted advisers. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.
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