Hilltop (NASDAQ: EQBK) and Equity BancShares (NASDAQ:EQBK) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Earnings and Valuation

This table compares Hilltop and Equity BancShares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilltop $1.71 billion 1.15 $132.54 million $1.66 12.54
Equity BancShares $118.13 million 5.09 $20.64 million $1.98 20.79

Hilltop has higher revenue and earnings than Equity BancShares. Hilltop is trading at a lower price-to-earnings ratio than Equity BancShares, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Hilltop has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Equity BancShares has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Hilltop and Equity BancShares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilltop 0 3 1 0 2.25
Equity BancShares 0 0 2 0 3.00

Hilltop presently has a consensus target price of $26.67, suggesting a potential upside of 28.08%. Equity BancShares has a consensus target price of $46.00, suggesting a potential upside of 11.76%. Given Hilltop’s higher possible upside, analysts plainly believe Hilltop is more favorable than Equity BancShares.

Profitability

This table compares Hilltop and Equity BancShares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilltop 6.17% 6.76% 0.96%
Equity BancShares 17.33% 9.59% 1.15%

Institutional and Insider Ownership

57.1% of Hilltop shares are owned by institutional investors. Comparatively, 61.9% of Equity BancShares shares are owned by institutional investors. 22.3% of Hilltop shares are owned by company insiders. Comparatively, 12.2% of Equity BancShares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Hilltop pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Equity BancShares does not pay a dividend. Hilltop pays out 16.9% of its earnings in the form of a dividend.

Summary

Equity BancShares beats Hilltop on 10 of the 16 factors compared between the two stocks.

About Hilltop

Hilltop Holdings Inc. provides banking and financial products and services. Its Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial, industrial, and single family residential mortgage loans. This segment also provides term and construction finance; check cards and safe deposit boxes; treasury management, Internet banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, and investment portfolio management services, as well as employee benefit and individual retirement accounts. The company's Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed and asset-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The company's Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veteran Affairs, and United States Department of Agriculture loans. Its Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, flood, and vacant policies; and commercial lines, such as commercial multi-peril, builders risk, builders risk renovation, sports liability, and inland marine policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, Maryland, North Carolina, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

About Equity BancShares

Equity Bancshares, Inc. operates as a bank holding company for Equity Bank that provides a range of financial services primarily to businesses, business owners, and individuals. The company accepts various deposit products, including demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction loans, homebuilder, agricultural, government guaranteed, and other loans, as well as letters of credit to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans, home equity lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, and automated clearing house and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of February 22, 2018, it operated 42 full-service branches located in Kansas, Missouri, Arkansas, and Oklahoma. Equity Bancshares, Inc. was founded in 2002 and is headquartered in Wichita, Kansas.

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