Analyzing Valley National Bancorp (NASDAQ:VLY) and Hawthorn Bancshares (NASDAQ:HWBK)

Valley National Bancorp (NASDAQ:VLYGet Rating) and Hawthorn Bancshares (NASDAQ:HWBKGet Rating) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Risk and Volatility

Valley National Bancorp has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares Valley National Bancorp and Hawthorn Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valley National Bancorp $1.49 billion 3.53 $473.84 million $1.13 11.04
Hawthorn Bancshares $80.84 million 2.18 $22.52 million $3.40 7.84

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


Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 3.5%. Hawthorn Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Valley National Bancorp pays out 38.9% of its earnings in the form of a dividend. Hawthorn Bancshares pays out 17.6% 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. Hawthorn Bancshares has increased its dividend for 11 consecutive years.


This table compares Valley National Bancorp and Hawthorn Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valley National Bancorp 31.82% 10.49% 1.16%
Hawthorn Bancshares 27.86% 16.22% 1.28%

Institutional & Insider Ownership

63.6% of Valley National Bancorp shares are held by institutional investors. Comparatively, 32.9% of Hawthorn Bancshares shares are held by institutional investors. 2.2% of Valley National Bancorp shares are held by company insiders. Comparatively, 11.7% of Hawthorn Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Valley National Bancorp and Hawthorn Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valley National Bancorp 0 3 2 0 2.40
Hawthorn Bancshares 0 0 0 0 N/A

Valley National Bancorp presently has a consensus target price of $14.94, suggesting a potential upside of 19.69%. Given Valley National Bancorp’s higher possible upside, equities research analysts plainly believe Valley National Bancorp is more favorable than Hawthorn Bancshares.


Valley National Bancorp beats Hawthorn Bancshares on 10 of the 16 factors compared between the two stocks.

About Valley National Bancorp (Get Rating)

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products. It operates through Commercial Lending, Consumer Lending, and Investment Management segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, foreign wire transfers services, and transaction accounts for non-resident aliens. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts and custom -tailored investment strategies for various retirement plans. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; and overdraft, drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. As of December 31,2021, it operated 232 branch offices in New Jersey, New York, Florida, and Alabama. The company was incorporated in 1927 and is headquartered in New York, New York.

About Hawthorn Bancshares (Get Rating)

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides commercial and personal banking services. It accepts checking, savings, money market, individual retirement, and other time deposit accounts; and certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. The company operates through 23 banking offices in Missouri communities, Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.

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