Contrasting First US Bancshares (NASDAQ:FUSB) and HBT Financial (NASDAQ:HBT)

HBT Financial (NASDAQ:HBT) and First US Bancshares (NASDAQ:FUSB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Dividends

HBT Financial pays an annual dividend of $0.76 per share and has a dividend yield of 3.7%. First US Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. HBT Financial pays out 33.6% of its earnings in the form of a dividend. First US Bancshares pays out 14.9% 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. First US Bancshares has raised its dividend for 2 consecutive years.

Profitability

This table compares HBT Financial and First US Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HBT Financial	26.29%	16.14%	1.52%
First US Bancshares	14.55%	9.57%	0.80%

Insider and Institutional Ownership

78.6% of HBT Financial shares are held by institutional investors. Comparatively, 18.7% of First US Bancshares shares are held by institutional investors. 59.8% of HBT Financial shares are held by insiders. Comparatively, 11.2% of First US Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HBT Financial and First US Bancshares’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HBT Financial	$265.05 million	2.43	$65.84 million	$2.26	9.04
First US Bancshares	$56.19 million	0.95	$8.48 million	$1.34	6.90

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

Volatility & Risk

HBT Financial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, First US Bancshares has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for HBT Financial and First US Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HBT Financial	1	1	1	0	2.00
First US Bancshares	0	0	0	0	N/A

HBT Financial currently has a consensus price target of $21.83, suggesting a potential upside of 6.92%. Given HBT Financial’s higher possible upside, research analysts clearly believe HBT Financial is more favorable than First US Bancshares.

Summary

HBT Financial beats First US Bancshares on 13 of the 16 factors compared between the two stocks.

About HBT Financial

HBT Financial, Inc. operates as the bank holding company for Heartland Bank and Trust Company that provides business, commercial, and retail banking products and services to individuals, businesses, and municipal entities in Central and Northeastern Illinois, and Eastern Iowa. The company's deposits accounts consist of noninterest-bearing demand deposits, interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposits, health savings accounts, and individual retirement accounts. Its loan offering comprises owner and non-owner occupied commercial real estate; construction and land development and multi-family; commercial and industrial; agricultural and farmland; and one-to-four family residential loans, as well as municipal, consumer, and other loans. The company also offers wealth management services, including financial planning to consumers, trusts, and estates; trustee and custodial; investment management; corporate retirement plan consulting and administration; and retail brokerage services. In addition, it provides farmland management, and farmland sales and services; commercial checking accounts; and treasury management services, as well as originates and sells residential mortgage loans. Further, the company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois.

About First US Bancshares

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.