Head-To-Head Analysis: Fvcbankcorp (NASDAQ:FVCB) and Hilltop (NYSE:HTH)

Hilltop (NYSE:HTH) and Fvcbankcorp (NASDAQ:FVCB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

Hilltop pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Hilltop pays out 28.7% of its earnings in the form of a dividend. Fvcbankcorp pays out 20.7% 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. Hilltop has raised its dividend for 8 consecutive years. Hilltop is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Hilltop has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Fvcbankcorp has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

57.1% of Hilltop shares are owned by institutional investors. Comparatively, 43.6% of Fvcbankcorp shares are owned by institutional investors. 29.9% of Hilltop shares are owned by company insiders. Comparatively, 10.9% of Fvcbankcorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hilltop and Fvcbankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilltop	9.86%	7.18%	1.01%
Fvcbankcorp	17.72%	8.73%	0.94%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hilltop and Fvcbankcorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilltop	0	4	1	0	2.20
Fvcbankcorp	0	2	1	0	2.33

Hilltop currently has a consensus target price of $34.00, suggesting a potential downside of 3.00%. Fvcbankcorp has a consensus target price of $16.00, suggesting a potential upside of 14.29%. Given Fvcbankcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Fvcbankcorp is more favorable than Hilltop.

Earnings and Valuation

This table compares Hilltop and Fvcbankcorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilltop	$1.61 billion	1.34	$113.21 million	$2.51	13.96
Fvcbankcorp	$115.85 million	2.18	$15.06 million	$1.16	12.07

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

Summary

Hilltop beats Fvcbankcorp on 10 of the 16 factors compared between the two stocks.

About Hilltop

Hilltop Holdings Inc. provides business and consumer banking services. It operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, term, agricultural and commercial real estate, equipment loans, and other lending products; and mortgage, commercial and industrial loans, and term and construction finance. It also provides treasury management, asset management, check cards, safe deposit boxes, online banking, bill pay, and overdraft privilege services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts services, as well as automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in originating, syndicating, and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance to arbitrage rebate compliance, portfolio management, and local government investment pool administration; advisory services and products for derivatives and commodities; agricultural insurance; and sells, trades in, and underwrites U.S. government and government agency bonds, corporate bonds, and municipal bonds; mortgage-backed, asset-backed, and commercial mortgage-backed securities and structured products; and provides asset and liability management advisory, clearing, retail, and securities lending services. The Mortgage Origination segment offers fixed and adjustable rate mortgages, jumbo, new construction, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. Hilltop Holdings Inc. was incorporated in 1998 and is based in Dallas, Texas.

About Fvcbankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.