Comparing Green Bancorp (GNBC) and Heritage Financial Group (HBOS)

Heritage Financial Group (NASDAQ: HBOS) and Green Bancorp (NASDAQ:GNBC) are both small-cap companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Risk & Volatility

How to Become a New Pot Stock Millionaire

Heritage Financial Group has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Green Bancorp has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.

Valuation & Earnings

This table compares Heritage Financial Group and Green Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage Financial Group N/A N/A N/A N/A N/A
Green Bancorp $190.76 million 4.40 $34.13 million $1.21 18.64

Green Bancorp has higher revenue and earnings than Heritage Financial Group.

Institutional & Insider Ownership

63.1% of Green Bancorp shares are held by institutional investors. 16.2% of Green Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Heritage Financial Group and Green Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Financial Group 12.90% 9.62% 0.89%
Green Bancorp 17.90% 9.84% 1.07%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Heritage Financial Group and Green Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Financial Group 0 0 0 0 N/A
Green Bancorp 0 2 1 0 2.33

Green Bancorp has a consensus price target of $25.00, suggesting a potential upside of 10.86%. Given Green Bancorp’s higher possible upside, analysts plainly believe Green Bancorp is more favorable than Heritage Financial Group.

Summary

Green Bancorp beats Heritage Financial Group on 9 of the 9 factors compared between the two stocks.

Heritage Financial Group Company Profile

Heritage Financial Group, Inc. (Heritage) is a bank holding company. Heritage conducts commercial banking, retail banking, mortgage banking and wealth management activities through its wholly owned subsidiary, HeritageBank of the South (the Bank). As of December 31, 2014, the Bank operated in Georgia, Florida and Alabama through 36 banking locations, 21 mortgage offices, and 5 investment offices. The Bank provides credit based products, deposit accounts, corporate cash management, investment support and other services to commercial and retail clients. As of December 31, 2014, the Company had total assets of $1.7 billion. The Company offers various types of loans, including, residential real estate loans; commercial real estate loans; construction and land loans; commercial and industrial loans, and consumer and other loans.

Green Bancorp Company Profile

Green Bancorp, Inc. operates as the bank holding company for Green Bank, N.A. that provides commercial and private banking services primarily in Texas. It offers deposit accounts, such as demand, savings, money market, and time accounts. The company also provides loans, including commercial and industrial loans, including commercial lines of credit, working capital loans, commercial real estate-backed loans, mortgage-warehouse lines, term loans, equipment financing, borrowing base loans, real estate construction loans, homebuilder loans, government guaranteed loans, purchased receivables financing, letters of credit, and other loan products, as well as acquisition, expansion, and development loans to national and regional companies, real estate developers, mortgage lenders, manufacturing and industrial companies, and other businesses. In addition, it offers various consumer loans, such as residential real estate loans, home equity loans, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. Further, the company provides a range of online banking solutions, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and extended drive-through hours, and ATMs, as well as banking through telephone, mail, and personal appointment. Additionally, it offers debit cards, night depository services, direct deposits, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company provides its services through 22 full service branches in the greater Houston and Dallas metropolitan areas, as well as in Austin, Louisville, and Honey Grove. Green Bancorp, Inc. was founded in 1999 and is headquartered in Houston, Texas.

Receive News & Ratings for Heritage Financial Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Heritage Financial Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply