Comparing Bancorp (NASDAQ:TBBK) and Hawthorn Bancshares (NASDAQ:HWBK)

Bancorp (NASDAQ:TBBK) and Hawthorn Bancshares (NASDAQ:HWBK) are both financial institutions, but how do they stack up against each other as investment options? In this article, we will evaluate both companies based on various factors including analyst recommendations, profitability, earnings, dividends, valuation, risk, and institutional ownership.

Risk & Volatility

One of the first aspects to consider when comparing these two stocks is their volatility. Bancorp has a beta of 1.59. This statistic indicates that Bancorp’s stock price is 59% more volatile than the S&P 500 index. In contrast, Hawthorn Bancshares features a beta of 0.59, which means its stock price is 41% less volatile than the S&P 500. This difference in volatility may appeal to different types of investors, depending on their risk tolerance.

Analyst Recommendations

When it comes to analyst ratings, Bancorp has received a favorable response from market analysts. According to recent reports, Bancorp has a consensus target price of $67.67, suggesting a potential upside of 20.13%. The table below summarizes recent ratings:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	0	3	0	3.00
Hawthorn Bancshares	0	0	0	0	0.00

Given Bancorp’s stronger consensus rating and higher expected upside, many analysts appear to favor it over Hawthorn Bancshares.

Valuation & Earnings

An evaluation of revenue and earnings offers further insights into these companies. Below is a comparative overview:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$523.72 million	5.17	$217.54 million	$4.30	13.10
Hawthorn Bancshares	$72.91 million	2.94	$18.26 million	$2.61	10.87

From the data, it is clear that Bancorp has higher revenues and earnings compared to Hawthorn Bancshares. However, it's worth noting that Hawthorn Bancshares has a lower price-to-earnings ratio, indicating it could be the more budget-friendly option at present.

Profitability

Let's assess the profitability of both companies by comparing their net margins, return on equity, and return on assets:

	Net Margins	Return on Equity	Return on Assets
Bancorp	30.97%	27.33%	2.66%
Hawthorn Bancshares	16.65%	13.00%	1.00%

Bancorp outperforms Hawthorn Bancshares in terms of profitability metrics, showcasing higher net margins, return on equity, and return on assets.

Institutional and Insider Ownership

Ownership dynamics also play a significant role in evaluating these companies. Bancorp enjoys a strong institutional backing with 96.2% of its shares held by institutional investors. In comparison, Hawthorn Bancshares has 30.7% institutional ownership. Additionally, insiders own 5.2% of Bancorp shares, whereas 23.4% of Hawthorn Bancshares are held by insiders. High institutional ownership often indicates that major investors believe in the company’s long-term growth potential.

Summary

Through the analysis of various factors, Bancorp outshines Hawthorn Bancshares in 13 of the 14 categories examined, making it the more favorable stock option at this time.

About Bancorp

Bancorp, Inc. functions as the parent company for The Bancorp Bank, National Association. It provides a range of banking products and services within the United States, including checking, savings, and money market accounts, as well as commercial loans and debit card services. Bancorp was established in 1999 and is headquartered in Wilmington, Delaware. More information can be found on their website bancorp.com.

About Hawthorn Bancshares

Hawthorn Bancshares, Inc., the holding company for Hawthorn Bank, offers a variety of banking services across the United States. These services include all types of deposit accounts, loans for individuals and businesses, and trust services. Founded in 1865, Hawthorn Bancshares is based in Jefferson City, Missouri.

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