Mid-Southern Bancorp (NASDAQ:MSVB) vs. HomeTrust Bancshares (NASDAQ:HTBI) Critical Comparison

HomeTrust Bancshares (NASDAQ:HTBI) and Mid-Southern Bancorp (NASDAQ:MSVB) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares HomeTrust Bancshares and Mid-Southern Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomeTrust Bancshares	$202.13 million	3.17	$54.81 million	$3.20	11.41
Mid-Southern Bancorp	$8.88 million	5.10	$1.46 million	($2.61)	-6.00

HomeTrust Bancshares has higher revenue and earnings than Mid-Southern Bancorp. Mid-Southern Bancorp is trading at a lower price-to-earnings ratio than HomeTrust Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for HomeTrust Bancshares and Mid-Southern Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HomeTrust Bancshares	0	1	2	0	2.67
Mid-Southern Bancorp	0	0	0	0	0.00

HomeTrust Bancshares currently has a consensus price target of $42.50, indicating a potential upside of 16.36%. Given HomeTrust Bancshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe HomeTrust Bancshares is more favorable than Mid-Southern Bancorp.

Profitability

This table compares HomeTrust Bancshares and Mid-Southern Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HomeTrust Bancshares	18.57%	10.43%	1.18%
Mid-Southern Bancorp	9.43%	3.08%	0.45%

Insider and Institutional Ownership

60.9% of HomeTrust Bancshares shares are owned by institutional investors. Comparatively, 10.1% of Mid-Southern Bancorp shares are owned by institutional investors. 13.2% of HomeTrust Bancshares shares are owned by company insiders. Comparatively, 10.2% of Mid-Southern Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

HomeTrust Bancshares has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Mid-Southern Bancorp has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Dividends

HomeTrust Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. Mid-Southern Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. HomeTrust Bancshares pays out 15.0% of its earnings in the form of a dividend. Mid-Southern Bancorp pays out -9.2% 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. Mid-Southern Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

HomeTrust Bancshares beats Mid-Southern Bancorp on 12 of the 16 factors compared between the two stocks.

About HomeTrust Bancshares

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. The company’s deposit products include savings, money market, noninterest-bearing, and interest-bearing checking accounts, as well as certificates of deposit for individuals, business, and nonprofit organizations. Its loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. The company also provides small business administration loans, equipment finance leases, and municipal leases; and cash management and online/mobile banking services. In addition, it invests in debt securities issued by the United States government agencies and government-sponsored enterprises, municipal and corporate bonds, commercial paper, and certificates of deposit insured by the federal deposit insurance corporation. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.

About Mid-Southern Bancorp

Mid-Southern Bancorp, Inc. operates as the holding company for Mid-Southern Savings Bank, FSB that provides various banking products and services to individuals and business customers. It accepts various deposit products, including checking, savings, money market, and demand accounts, as well as certificates of deposit and term deposits. The company also offers loans secured by first mortgages on one- to four-family residences, including home equity loans and lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences; commercial and multifamily real estate loans; land and lot loans; commercial business loans; consumer loans, including new and used manufactured homes, automobiles and truck, boats, and motorcycles and recreational vehicle loans; loans secured by savings deposits and other personal loans; and unsecured consumer loans. In addition, it holds and manages an investment securities portfolio. The company provides its products and services through its main office in Salem; and through its branch offices located in Mitchell and Orleans, Indiana, as well as through loan production offices located in New Albany, Indiana and Louisville, Kentucky. The company was founded in 1886 and is headquartered in Salem, Indiana.