Head-To-Head Comparison: HomeTrust Bancshares (NYSE:HTB) versus Associated Banc (NYSE:ASB)

Associated Banc (NYSE:ASB) and HomeTrust Bancshares (NYSE:HTB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Associated Banc and HomeTrust Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated Banc	$2.46 billion	2.20	$474.78 million	$2.86	10.04
HomeTrust Bancshares	$292.47 million	2.61	$64.36 million	$3.81	12.01

Associated Banc has higher revenue and earnings than HomeTrust Bancshares. Associated Banc is trading at a lower price-to-earnings ratio than HomeTrust Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Associated Banc and HomeTrust Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated Banc	0	6	6	0	2.50
HomeTrust Bancshares	0	2	2	1	2.80

Associated Banc presently has a consensus price target of $31.90, suggesting a potential upside of 11.15%. HomeTrust Bancshares has a consensus price target of $52.00, suggesting a potential upside of 13.64%. Given HomeTrust Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe HomeTrust Bancshares is more favorable than Associated Banc.

Dividends

Associated Banc pays an annual dividend of $0.96 per share and has a dividend yield of 3.3%. HomeTrust Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Associated Banc pays out 33.6% of its earnings in the form of a dividend. HomeTrust Bancshares pays out 15.7% 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. Associated Banc has increased its dividend for 13 consecutive years. Associated Banc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Associated Banc has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, HomeTrust Bancshares has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Associated Banc and HomeTrust Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated Banc	19.66%	10.64%	1.12%
HomeTrust Bancshares	22.50%	10.88%	1.45%

Institutional & Insider Ownership

83.0% of Associated Banc shares are owned by institutional investors. Comparatively, 60.9% of HomeTrust Bancshares shares are owned by institutional investors. 0.7% of Associated Banc shares are owned by company insiders. Comparatively, 11.0% of HomeTrust Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

HomeTrust Bancshares beats Associated Banc on 12 of the 18 factors compared between the two stocks.

About Associated Banc

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending and equipment finance, loan syndications products, residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance and business loans, and business lines of credit. It also provides deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services, such as interest rate risk management and foreign exchange solutions; fiduciary services, such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services; and investable funds solutions, including savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount, and online investment brokerage; investment advisory services; and trust and investment management accounts. In addition, the company offers deposit and transactional solutions, including checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

About HomeTrust Bancshares

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company’s loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. It also provides small business administration loans, equipment finance leases, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services. As of June 30, 2021, the company operated 41 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.