Citizens Financial Group (NYSE: CFG) and Heritage Financial Group (NASDAQ:HBOS) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings & Valuation

This table compares Citizens Financial Group and Heritage Financial Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens Financial Group $5.76 billion 3.59 $1.05 billion $2.47 17.04
Heritage Financial Group N/A N/A N/A $1.19 25.36

Citizens Financial Group has higher revenue and earnings than Heritage Financial Group. Citizens Financial Group is trading at a lower price-to-earnings ratio than Heritage Financial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Citizens Financial Group and Heritage Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens Financial Group 2 4 7 0 2.38
Heritage Financial Group 0 0 0 0 N/A

Citizens Financial Group currently has a consensus target price of $40.42, indicating a potential downside of 3.95%. Given Citizens Financial Group’s higher probable upside, equities analysts clearly believe Citizens Financial Group is more favorable than Heritage Financial Group.

Dividends

Citizens Financial Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Heritage Financial Group does not pay a dividend. Citizens Financial Group pays out 29.1% of its earnings in the form of a dividend. Heritage Financial Group has increased its dividend for 2 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Citizens Financial Group 20.26% 6.44% 0.84%
Heritage Financial Group 12.90% 9.62% 0.89%

Risk & Volatility

Citizens Financial Group has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Heritage Financial Group has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Citizens Financial Group shares are owned by institutional investors. 0.2% of Citizens Financial Group shares are owned 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.

Summary

Citizens Financial Group beats Heritage Financial Group on 9 of the 13 factors compared between the two stocks.

About Citizens Financial Group

Citizens Financial Group, Inc. is a retail bank holding company. The Company operates through two segments: Consumer Banking and Commercial Banking. Its Consumer Banking serves retail customers and small businesses. Consumer Banking products and services include deposit products, mortgage and home equity lending, auto financing, student loans, personal unsecured lines and loans, credit cards, business loans, wealth management and investment services. The Company’s Commercial Banking segment offers a range of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange and interest rate risk management solutions, as well as corporate finance, merger and acquisition, and debt and equity capital markets capabilities. The Company delivers a range of retail and commercial banking products and services to individuals, institutions and companies. As of December 31, 2016, the Company operated approximately 1,200 branches.

About Heritage Financial Group

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.

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