Hawthorn Bancshares (NASDAQ:HWBK – Get Free Report) and LINKBANCORP (NASDAQ:LNKB – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Institutional & Insider Ownership
30.7% of Hawthorn Bancshares shares are held by institutional investors. Comparatively, 37.5% of LINKBANCORP shares are held by institutional investors. 22.7% of Hawthorn Bancshares shares are held by company insiders. Comparatively, 37.5% of LINKBANCORP shares are held by company 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.
Valuation and Earnings
This table compares Hawthorn Bancshares and LINKBANCORP”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawthorn Bancshares | $109.67 million | 2.03 | $18.26 million | $3.19 | 10.10 |
| LINKBANCORP | $167.59 million | 1.86 | $26.21 million | $1.02 | 8.18 |
LINKBANCORP has higher revenue and earnings than Hawthorn Bancshares. LINKBANCORP is trading at a lower price-to-earnings ratio than Hawthorn Bancshares, indicating that it is currently the more affordable of the two stocks.
Dividends
Hawthorn Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 3.6%. Hawthorn Bancshares pays out 25.1% of its earnings in the form of a dividend. LINKBANCORP pays out 29.4% 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. Hawthorn Bancshares has increased its dividend for 5 consecutive years.
Analyst Ratings
This is a summary of recent ratings and target prices for Hawthorn Bancshares and LINKBANCORP, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawthorn Bancshares | 0 | 1 | 0 | 0 | 2.00 |
| LINKBANCORP | 0 | 3 | 0 | 0 | 2.00 |
LINKBANCORP has a consensus price target of $9.63, indicating a potential upside of 15.41%. Given LINKBANCORP’s higher probable upside, analysts clearly believe LINKBANCORP is more favorable than Hawthorn Bancshares.
Profitability
This table compares Hawthorn Bancshares and LINKBANCORP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hawthorn Bancshares | 20.09% | 14.22% | 1.18% |
| LINKBANCORP | 20.81% | 10.28% | 1.03% |
Volatility & Risk
Hawthorn Bancshares has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, LINKBANCORP has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.
Summary
Hawthorn Bancshares beats LINKBANCORP on 8 of the 15 factors compared between the two stocks.
About Hawthorn Bancshares
Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.
About LINKBANCORP
LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.
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