Heartland Financial USA (HTLF) and Western Alliance Bancorporation (WAL) Head to Head Analysis

Heartland Financial USA (NASDAQ: HTLF) and Western Alliance Bancorporation (NYSE:WAL) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

Heartland Financial USA has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Western Alliance Bancorporation has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Dividends

Heartland Financial USA pays an annual dividend of $0.44 per share and has a dividend yield of 0.8%. Western Alliance Bancorporation does not pay a dividend. Heartland Financial USA pays out 14.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Heartland Financial USA and Western Alliance Bancorporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heartland Financial USA $440.08 million 3.78 $80.34 million $2.95 18.81
Western Alliance Bancorporation $743.42 million 8.46 $259.79 million $2.92 20.41

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

Insider and Institutional Ownership

47.9% of Heartland Financial USA shares are held by institutional investors. Comparatively, 81.9% of Western Alliance Bancorporation shares are held by institutional investors. 9.0% of Heartland Financial USA shares are held by insiders. Comparatively, 8.0% of Western Alliance Bancorporation shares are held 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.

Profitability

This table compares Heartland Financial USA and Western Alliance Bancorporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heartland Financial USA 18.14% 9.77% 0.93%
Western Alliance Bancorporation 36.16% 15.37% 1.67%

Analyst Ratings

This is a breakdown of current ratings for Heartland Financial USA and Western Alliance Bancorporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Financial USA 0 4 2 0 2.33
Western Alliance Bancorporation 0 0 9 0 3.00

Heartland Financial USA presently has a consensus price target of $53.20, suggesting a potential downside of 4.14%. Western Alliance Bancorporation has a consensus price target of $63.39, suggesting a potential upside of 6.34%. Given Western Alliance Bancorporation’s stronger consensus rating and higher possible upside, analysts plainly believe Western Alliance Bancorporation is more favorable than Heartland Financial USA.

Summary

Western Alliance Bancorporation beats Heartland Financial USA on 13 of the 16 factors compared between the two stocks.

Heartland Financial USA Company Profile

Heartland Financial USA, Inc. (Heartland) is a diversified financial services company engaged in providing banking, mortgage, private client, investment, treasury management, card services, insurance, and consumer finance services to individuals and businesses. Its segments include community and other banking, and retail mortgage banking. Its community and other banking segment is engaged in making loans to, and generating deposits from, individuals and businesses in the markets where Heartland has banks. Its retail mortgage banking segment is engaged in the origination of residential loans and subsequent sale of those loans to investors. The Company conducts its community banking business through independently chartered community banks (collectively, the Bank Subsidiaries). Its securities portfolio consists of United States Government corporations and agencies, mortgage-backed securities and other securities. Its loans include commercial, commercial real estate and consumer loans.

Western Alliance Bancorporation Company Profile

Western Alliance Bancorporation is a bank holding company. The Company provides a range of deposit, lending, treasury management, international banking and online banking products and services through its banking subsidiary, Western Alliance Bank (WAB or the Bank). The Company’s regional segments include Arizona, Nevada, Southern California and Northern California, which provide banking and related services to their respective markets. The operations from the regional segments correspond to the banking divisions, which include Alliance Bank of Arizona (ABA) in Arizona, Bank of Nevada (BON) and First Independent Bank (FIB) in Nevada, Torrey Pines Bank (TPB) in Southern California, and Bridge Bank in Northern California. The Company’s National Business Lines (NBL) segments include HOA Services, Hotel Franchise Finance (HFF), Public & Nonprofit Finance, Technology & Innovation, Other NBLs, which provide specialized banking services to niche markets.

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