Comparing Hawthorn Bancshares (NASDAQ:HWBK) and Capital One Financial (NYSE:COF)

Hawthorn Bancshares (NASDAQ:HWBKGet Rating) and Capital One Financial (NYSE:COFGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Dividends

Hawthorn Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Hawthorn Bancshares pays out 17.6% of its earnings in the form of a dividend. Capital One Financial pays out 8.9% 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. Hawthorn Bancshares has raised its dividend for 11 consecutive years and Capital One Financial has raised its dividend for 1 consecutive years. Hawthorn Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Hawthorn Bancshares has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

32.9% of Hawthorn Bancshares shares are held by institutional investors. Comparatively, 88.9% of Capital One Financial shares are held by institutional investors. 11.7% of Hawthorn Bancshares shares are held by insiders. Comparatively, 1.3% of Capital One Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hawthorn Bancshares and Capital One Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawthorn Bancshares 27.86% 16.22% 1.28%
Capital One Financial 38.68% 19.77% 2.90%

Analyst Ratings

This is a summary of recent recommendations for Hawthorn Bancshares and Capital One Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawthorn Bancshares 0 0 0 0 N/A
Capital One Financial 0 7 14 0 2.67

Capital One Financial has a consensus price target of $178.87, suggesting a potential upside of 34.87%. Given Capital One Financial’s higher probable upside, analysts clearly believe Capital One Financial is more favorable than Hawthorn Bancshares.

Earnings and Valuation

This table compares Hawthorn Bancshares and Capital One Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawthorn Bancshares $80.84 million 2.18 $22.52 million $3.40 7.84
Capital One Financial $32.03 billion 1.70 $12.39 billion $26.84 4.94

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

Summary

Capital One Financial beats Hawthorn Bancshares on 11 of the 16 factors compared between the two stocks.

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.

About Capital One Financial (Get Rating)

Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.

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