Head-To-Head Analysis: First Northern Community Bancorp (NASDAQ:FNRN) & HomeTrust Bancshares (NYSE:HTB)
by Renee Jackson · The Cerbat GemFirst Northern Community Bancorp (NASDAQ:FNRN – Get Free Report) and HomeTrust Bancshares (NYSE:HTB – Get Free Report) are both small-cap financial services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
17.9% of First Northern Community Bancorp shares are held by institutional investors. Comparatively, 60.9% of HomeTrust Bancshares shares are held by institutional investors. 11.9% of First Northern Community Bancorp shares are held by company insiders. Comparatively, 11.0% of HomeTrust Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
First Northern Community Bancorp has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, HomeTrust Bancshares has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares First Northern Community Bancorp and HomeTrust Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Northern Community Bancorp | 25.92% | 11.32% | 1.23% |
| HomeTrust Bancshares | 22.78% | 11.25% | 1.47% |
Earnings and Valuation
This table compares First Northern Community Bancorp and HomeTrust Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Northern Community Bancorp | $88.40 million | 3.24 | $21.13 million | $1.40 | 12.45 |
| HomeTrust Bancshares | $292.47 million | 2.69 | $64.36 million | $3.87 | 12.08 |
HomeTrust Bancshares has higher revenue and earnings than First Northern Community Bancorp. HomeTrust Bancshares is trading at a lower price-to-earnings ratio than First Northern Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for First Northern Community Bancorp and HomeTrust Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Northern Community Bancorp | 0 | 1 | 0 | 0 | 2.00 |
| HomeTrust Bancshares | 0 | 1 | 1 | 0 | 2.50 |
HomeTrust Bancshares has a consensus price target of $47.00, indicating a potential upside of 0.52%. Given HomeTrust Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe HomeTrust Bancshares is more favorable than First Northern Community Bancorp.
Summary
HomeTrust Bancshares beats First Northern Community Bancorp on 9 of the 14 factors compared between the two stocks.
About First Northern Community Bancorp
First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small to medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market accounts, and time deposits. Its loan portfolio comprises of commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. The company also offers credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. In addition, it provides issues cashier’s checks, safe deposit boxes rental, and other customary banking services. The company operates eleven full-service branches located in the cities of Auburn, Davis, Dixon, Fairfield, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, and Woodland; a satellite banking office inside a retirement community in the city of Davis; a residential mortgage loan office in Davis; and a commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.
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.