Financial Review: Heartland BancCorp. (OTCMKTS:HLAN) and 1st Source (NASDAQ:SRCE)

1st Source (NASDAQ:SRCE) and Heartland BancCorp. (OTCMKTS:HLAN) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Valuation & Earnings

This table compares 1st Source and Heartland BancCorp.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Source	$600.00 million	3.08	$158.28 million	$6.52	11.76
Heartland BancCorp.	$119.21 million	2.74	$20.26 million	$9.74	16.43

1st Source has higher revenue and earnings than Heartland BancCorp.. 1st Source is trading at a lower price-to-earnings ratio than Heartland BancCorp., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 1st Source and Heartland BancCorp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Source	26.66%	12.39%	1.77%
Heartland BancCorp.	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for 1st Source and Heartland BancCorp., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Source	0	3	1	1	2.60
Heartland BancCorp.	0	0	0	0	0.00

1st Source presently has a consensus target price of $77.00, suggesting a potential upside of 0.39%. Given 1st Source’s stronger consensus rating and higher possible upside, equities analysts clearly believe 1st Source is more favorable than Heartland BancCorp..

Insider and Institutional Ownership

74.5% of 1st Source shares are owned by institutional investors. Comparatively, 7.5% of Heartland BancCorp. shares are owned by institutional investors. 20.2% of 1st Source shares are owned by company insiders. Comparatively, 22.7% of Heartland BancCorp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

1st Source beats Heartland BancCorp. on 11 of the 14 factors compared between the two stocks.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

About Heartland BancCorp.

Heartland BancCorp operates as the bank holding company for Heartland Bank that provides various banking and financial services to individual and corporate customers. The company offers personal and business checking and savings accounts. It also provides various lending solutions comprising agricultural loans, commercial and business lending, home and personal loans, and title services. In addition, the company offers online banking, treasury management, credit and debit card, and mobile wallet services. Further, it provides education planning, insurance, wealth management, and retirement planning services. Heartland BancCorp was founded in 1911 and is based in Whitehall, Ohio.