Heritage Financial Corporation (HFWA) vs Northeast Bancorp (NBN)

Heritage Financial Corporation and Northeast Bancorp are both Banks Regional companies. Heritage Financial Corporation and Northeast Bancorp are of similar size ($1.2B and $1.1B). Northeast Bancorp trades at the lower P/E: 10.1× against 13.4×. Heritage Financial Corporation grew revenue faster over the last twelve months: 17.2% against 9.71%. Northeast Bancorp has the higher net margin (27.9% vs 20.4%) and the higher return on invested capital (8.97% vs 5.20%). Both pay a dividend; Heritage Financial Corporation yields more (5.04% vs 0.08%). Across the 19 metrics below, Northeast Bancorp leads on 10 and Heritage Financial Corporation on 9.

Valuation

Metric HFWA NBN Banks Regional median
P/E 13.41 10.08 12.15
P/S 3.08 2.81 2.37
P/B 1.06 1.79 1.21
Price to free cash flow 14.59 n/m 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.04 3.91 2.27
Earnings yield 7.46% 9.92% 8.11%
Free cash flow yield 6.85% (5.91%) 8.98%

Profitability

Metric HFWA NBN Banks Regional median
Gross margin 77.18% 61.42% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.44% 27.91% 18.66%
Free cash flow margin 21.11% (16.62%) 21.18%
Return on equity 7.80% 19.57% 10.64%
Return on assets 1.01% 2.26% 1.13%
Return on invested capital 5.20% 8.97% 8.33%

Growth

Metric HFWA NBN Banks Regional median
Revenue growth (TTM) 17.17% 9.71% 6.61%
EPS growth (last fiscal year) 58.06% 26.39% —
Revenue growth, 5-year CAGR 5.96% 20.73% 12.30%
Net income growth, 5-year CAGR 7.72% 8.49% 9.71%

Health

Metric HFWA NBN Banks Regional median
Debt to equity 0.17 1.42 0.22
Current ratio 0.83 1.35 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HFWA NBN Banks Regional median
Dividend yield 5.04% 0.08% 3.75%
Payout ratio 0.38 0.01 0.27

Size

Metric HFWA NBN Banks Regional median
Market cap 1.16b 1.11b 921.07m

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