Financial Analysis: HMN Financial (NASDAQ:HMNF) & First Guaranty Bancshares (NASDAQ:FGBI)
HMN Financial (NASDAQ:HMNF) and First Guaranty Bancshares (NASDAQ:FGBI) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
This table compares HMN Financial and First Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Guaranty Bancshares||13.57%||8.19%||0.67%|
HMN Financial has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, First Guaranty Bancshares has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Insider & Institutional Ownership
41.7% of HMN Financial shares are owned by institutional investors. Comparatively, 11.1% of First Guaranty Bancshares shares are owned by institutional investors. 8.3% of HMN Financial shares are owned by company insiders. Comparatively, 41.4% of First Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for HMN Financial and First Guaranty Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Guaranty Bancshares||0||0||0||0||N/A|
First Guaranty Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. HMN Financial does not pay a dividend.
Earnings and Valuation
This table compares HMN Financial and First Guaranty Bancshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HMN Financial||$38.10 million||2.68||$8.24 million||N/A||N/A|
|First Guaranty Bancshares||$83.67 million||2.25||$14.21 million||N/A||N/A|
First Guaranty Bancshares has higher revenue and earnings than HMN Financial.
First Guaranty Bancshares beats HMN Financial on 6 of the 11 factors compared between the two stocks.
About HMN Financial
HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services. The company offers various deposit accounts, such as savings, negotiable order of withdrawal, non-interest bearing checking, money market, and certificate accounts, including individual retirement accounts. It also provides single family residential loans; commercial real estate and multi-family mortgage loans; construction and commercial business loans; and consumer loans, such as home equity, automobile, recreational vehicle, mobile home, and lot loans, as well as loans secured by deposit accounts, and other loans for household and personal purposes. In addition, the company offers financial planning products and services; and invests in mortgage-backed and related securities, the United States government agency obligations, and other permissible investments. The company operates through 14 full service branches located in Minnesota and Iowa; and 2 loan production offices located in Minnesota and Wisconsin. HMN Financial, Inc. was founded in 1934 and is based in Rochester, Minnesota.
About First Guaranty Bancshares
First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services to businesses, professionals, and individuals in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits. The company also provides loans, such as non-farm non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, construction and land development loans, agricultural loans, farmland loans, consumer and other loans, and multifamily loans. In addition, it offers a range of consumer services, including personal and commercial credit cards, remote deposit capture, safe deposit boxes, official checks, Internet banking, automated teller machines, online bill pay, mobile banking, and lockbox services. The company operates through 27 banking facilities located in market services areas of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Dallas-Fort Worth-Arlington, and Waco. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.
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