Analyzing Truxton (OTCMKTS:TRUX) and HarborOne Bancorp (NASDAQ:HONE)

HarborOne Bancorp (NASDAQ:HONE) and Truxton (OTCMKTS:TRUX) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

65.0% of HarborOne Bancorp shares are owned by institutional investors. Comparatively, 0.4% of Truxton shares are owned by institutional investors. 4.9% of HarborOne Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares HarborOne Bancorp and Truxton”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HarborOne Bancorp	$160.61 million	3.72	$16.08 million	$0.37	36.16
Truxton	$67.30 million	3.18	$17.54 million	$6.04	12.17

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

Dividends

HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Truxton pays an annual dividend of $1.72 per share and has a dividend yield of 2.3%. HarborOne Bancorp pays out 86.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Truxton pays out 28.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for HarborOne Bancorp and Truxton, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HarborOne Bancorp	0	1	0	0	2.00
Truxton	0	0	0	0	N/A

HarborOne Bancorp presently has a consensus target price of $14.00, suggesting a potential upside of 4.63%. Given HarborOne Bancorp’s higher probable upside, equities analysts plainly believe HarborOne Bancorp is more favorable than Truxton.

Profitability

This table compares HarborOne Bancorp and Truxton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HarborOne Bancorp	5.20%	4.59%	0.46%
Truxton	23.95%	N/A	N/A

Volatility and Risk

HarborOne Bancorp has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Truxton has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

HarborOne Bancorp beats Truxton on 10 of the 14 factors compared between the two stocks.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.