Hilltop (HTH) & Popular (BPOP) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of current recommendations for Hilltop and Popular, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilltop 0 3 2 0 2.40
Popular 0 1 8 0 2.89

Hilltop presently has a consensus target price of $25.75, suggesting a potential upside of 28.81%. Popular has a consensus target price of $53.94, suggesting a potential upside of 2.48%. Given Hilltop’s higher possible upside, research analysts plainly believe Hilltop is more favorable than Popular.

Profitability

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

Net Margins Return on Equity Return on Assets
Hilltop 6.55% 7.00% 1.00%
Popular 16.32% 8.17% 0.91%

Dividends

Hilltop pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Popular pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Hilltop pays out 16.9% of its earnings in the form of a dividend. Popular pays out 37.3% 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. Popular has increased its dividend for 2 consecutive years. Popular is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

59.4% of Hilltop shares are held by institutional investors. Comparatively, 87.7% of Popular shares are held by institutional investors. 22.3% of Hilltop shares are held by company insiders. Comparatively, 1.4% of Popular shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Hilltop and Popular’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilltop $1.71 billion 1.10 $132.54 million $1.66 12.04
Popular $2.15 billion 2.51 $107.68 million $2.68 19.64

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

Volatility and Risk

Hilltop has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Popular has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Summary

Popular beats Hilltop on 12 of the 17 factors compared between the two stocks.

Hilltop Company Profile

Hilltop Holdings Inc. provides banking and financial products and services. Its 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, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial, industrial, and single family residential mortgage loans. This segment also provides term and construction finance; check cards and safe deposit boxes; treasury management, Internet banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, and investment portfolio management services, as well as employee benefit and individual retirement accounts. The company's Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed and asset-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The company's Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veteran Affairs, and United States Department of Agriculture loans. Its Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, flood, and vacant policies; and commercial lines, such as commercial multi-peril, builders risk, builders risk renovation, sports liability, and inland marine policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, Maryland, North Carolina, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

Popular Company Profile

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services primarily to institutional and retail customers. The company accepts various deposit products. It also offers commercial and industrial loans; commercial real estate loans; residential mortgage loans; consumer loans, including personal loans, credit cards, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides financial advisory, investment banking, investment and securities brokerage, and insurance and reinsurance services. As of December 31, 2017, it owned and occupied approximately 67 branch premises and other facilities in Puerto Rico; and 62 offices comprising 6 owned and 56 leased in New York, New Jersey, and Florida. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

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