Heartland Financial USA (HTLF) & Two Rivers Bancorp (TRCB) Critical Contrast

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Heartland Financial USA (NASDAQ:HTLF) and Two Rivers Bancorp (NASDAQ:TRCB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider & Institutional Ownership

51.6% of Heartland Financial USA shares are owned by institutional investors. Comparatively, 22.2% of Two Rivers Bancorp shares are owned by institutional investors. 6.6% of Heartland Financial USA shares are owned by company insiders. Comparatively, 16.5% of Two Rivers Bancorp 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.

Risk and Volatility

Heartland Financial USA has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Two Rivers Bancorp has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Heartland Financial USA and Two Rivers Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Financial USA 0 4 2 0 2.33
Two Rivers Bancorp 0 0 1 0 3.00

Heartland Financial USA presently has a consensus price target of $57.50, indicating a potential downside of 0.05%. Given Heartland Financial USA’s higher possible upside, equities analysts plainly believe Heartland Financial USA is more favorable than Two Rivers Bancorp.


This table compares Heartland Financial USA and Two Rivers Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heartland Financial USA 16.67% 9.06% 0.95%
Two Rivers Bancorp 16.85% 9.06% 0.95%


Heartland Financial USA pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Two Rivers Bancorp pays an annual dividend of $0.22 per share and has a dividend yield of 1.3%. Heartland Financial USA pays out 18.7% of its earnings in the form of a dividend. Two Rivers Bancorp pays out 23.4% 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. Two Rivers Bancorp has raised its dividend for 4 consecutive years. Two Rivers Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Heartland Financial USA and Two Rivers Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heartland Financial USA $465.68 million 4.25 $75.27 million $3.00 19.18
Two Rivers Bancorp $43.70 million 3.28 $6.50 million $0.94 17.82

Heartland Financial USA has higher revenue and earnings than Two Rivers Bancorp. Two Rivers Bancorp is trading at a lower price-to-earnings ratio than Heartland Financial USA, indicating that it is currently the more affordable of the two stocks.


Heartland Financial USA beats Two Rivers Bancorp on 10 of the 15 factors compared between the two stocks.

About Heartland Financial USA

Heartland Financial USA, Inc., a multi-bank holding company, provides commercial, small business, and consumer banking services to individuals and businesses in the United States. It accepts various deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, health savings accounts, and other time deposits. The company also offers commercial and industrial loans; commercial real estate loans; small business loans; agricultural loans; real estate mortgage loans; consumer loans comprising motor vehicle loans, home improvement loans, home equity line of credit, and fixed rate home equity and personal lines of credit; and credit cards for commercial, business, and personal use. In addition, it provides online banking, mobile banking, bill payment, automated clearing house, wire transfer, zero balance account, transaction reporting, lock box, remote deposit capture, accounts receivable, investment sweep account, reconciliation, treasury management, foreign exchange, and various fraud prevention services, as well as commercial purchasing and merchant credit cards, debit cards, and automated teller machines. Further, the company offers investment services, such as mutual funds, annuities, retirement products, education savings products, brokerage services, employer sponsored plans, and insurance products, as well as vehicle, property and casualty, and life and disability insurance products. Additionally, it is involved in the community development, consumer finance, multi-line insurance agency, and property management businesses. The company operates through a network of 118 banking locations in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas, and California. Heartland Financial USA, Inc. was founded in 1981 and is headquartered in Dubuque, Iowa.

About Two Rivers Bancorp

Two River Bancorp operates as the bank holding company for Two River Community Bank that provides a range of banking services to small and medium-sized businesses, not-for-profit organizations, professionals, and individuals. The company offers deposit products, including checking, savings, and money market accounts, as well as certificates of deposit. It also provides construction and land development loans; commercial and industrial loans; commercial real estate loans; residential real estate loans consisting of single-family detached units, individual condominium units, two-to-four family dwelling units, and townhouses; consumer loans comprising home equity lines of credit, home equity loans, personal loans, automobile loans, and overdraft protection; participation loans; and small business administration loans. In addition, the company offers remote deposit capture, ACH, direct deposit, coin counting, night depository, corporate business, and telephone and Internet banking services; and safe deposit boxes, debit and ATM cards, money orders, wire transfers, and automated teller machines. It operates 14 branches and 2 loan production offices in Monmouth, Middlesex, Union, and Ocean Counties, New Jersey. The company was formerly known as Community Partners Bancorp and changed its name to Two River Bancorp in June 2013. Two River Bancorp was founded in 2000 and is headquartered in Tinton Falls, New Jersey.

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