HomeTrust Bancshares (NASDAQ:HTBI) vs. Finward Bancorp (NASDAQ:FNWD) Critical Contrast

Finward Bancorp (NASDAQ:FNWD) and HomeTrust Bancshares (NASDAQ:HTBI) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Finward Bancorp and HomeTrust Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	10.44%	7.60%	0.55%
HomeTrust Bancshares	18.53%	10.41%	1.16%

Valuation and Earnings

This table compares Finward Bancorp and HomeTrust Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$70.21 million	1.91	$8.38 million	$2.69	11.58
HomeTrust Bancshares	$218.18 million	2.94	$55.39 million	$3.16	11.59

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

Analyst Ratings

This is a summary of recent ratings and target prices for Finward Bancorp and HomeTrust Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	1	0	3.00
HomeTrust Bancshares	0	1	2	0	2.67

Finward Bancorp currently has a consensus target price of $31.00, indicating a potential downside of 0.48%. HomeTrust Bancshares has a consensus target price of $39.33, indicating a potential upside of 7.41%. Given HomeTrust Bancshares’ higher possible upside, analysts plainly believe HomeTrust Bancshares is more favorable than Finward Bancorp.

Institutional & Insider Ownership

26.6% of Finward Bancorp shares are held by institutional investors. Comparatively, 60.9% of HomeTrust Bancshares shares are held by institutional investors. 13.7% of Finward Bancorp shares are held by insiders. Comparatively, 13.2% of HomeTrust Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Finward Bancorp has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, HomeTrust Bancshares has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Dividends

Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. HomeTrust Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. Finward Bancorp pays out 17.8% of its earnings in the form of a dividend. HomeTrust Bancshares pays out 15.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

HomeTrust Bancshares beats Finward Bancorp on 13 of the 16 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About HomeTrust Bancshares

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. The company’s deposit products include savings, money market, noninterest-bearing, and interest-bearing checking accounts, as well as certificates of deposit for individuals, business, and nonprofit organizations. Its loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. The company also provides small business administration loans, equipment finance leases, and municipal leases; and cash management and online/mobile banking services. In addition, it invests in debt securities issued by the United States government agencies and government-sponsored enterprises, municipal and corporate bonds, commercial paper, and certificates of deposit insured by the federal deposit insurance corporation. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.