Critical Review: Blue Hills Bancorp (BHBK) and Veritex (VBTX)

Blue Hills Bancorp (NASDAQ: BHBK) and Veritex (NASDAQ:VBTX) are both small-cap financials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings and Valuation

This table compares Blue Hills Bancorp and Veritex’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Hills Bancorp $101.86 million 5.24 $16.49 million $0.78 25.51
Veritex $87.13 million 7.93 $16.26 million $0.87 32.95

Blue Hills Bancorp has higher revenue and earnings than Veritex. Blue Hills Bancorp is trading at a lower price-to-earnings ratio than Veritex, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Blue Hills Bancorp has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Veritex has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Insider and Institutional Ownership

51.9% of Blue Hills Bancorp shares are held by institutional investors. Comparatively, 65.6% of Veritex shares are held by institutional investors. 3.7% of Blue Hills Bancorp shares are held by company insiders. Comparatively, 6.9% of Veritex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.


This table compares Blue Hills Bancorp and Veritex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Hills Bancorp 16.19% 3.47% 0.55%
Veritex 18.67% 5.71% 0.97%


Blue Hills Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Veritex does not pay a dividend. Blue Hills Bancorp pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations and price targets for Blue Hills Bancorp and Veritex, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Hills Bancorp 0 1 1 0 2.50
Veritex 0 0 4 0 3.00

Blue Hills Bancorp presently has a consensus price target of $22.50, suggesting a potential upside of 13.07%. Veritex has a consensus price target of $32.13, suggesting a potential upside of 12.05%. Given Blue Hills Bancorp’s higher possible upside, research analysts plainly believe Blue Hills Bancorp is more favorable than Veritex.


Veritex beats Blue Hills Bancorp on 12 of the 16 factors compared between the two stocks.

About Blue Hills Bancorp

Blue Hills Bancorp, Inc. is a bank holding company for the Blue Hills Bank (the Bank). Blue Hills Bank is a Massachusetts-chartered savings bank. As of December 31, 2016, the Bank provided financial services to individuals, families, small to mid-size businesses and government and non-profit organizations online and through its 11 full-service branch offices located in Brookline, Dedham, Hyde Park, Milton, Nantucket, Norwood, West Roxbury, and Westwood, Massachusetts. Its primary deposit-taking market includes Norfolk, Suffolk and Nantucket Counties in Massachusetts, and its lending market is primarily based in eastern Massachusetts. Its business consists primarily of accepting deposits from the general public, commercial businesses and government and non-profit organizations, and investing those deposits, together with funds generated from operations and borrowings in one- to four-family residential mortgage loans, commercial business loans and investment securities, among others.

About Veritex

Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.

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