Reviewing Hawthorn Bancshares (HWBK) and Sturgis Bancorp (STBI)

Hawthorn Bancshares (NASDAQ:HWBK) and Sturgis Bancorp (OTCMKTS:STBI) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Hawthorn Bancshares and Sturgis Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawthorn Bancshares 0 0 0 0 N/A
Sturgis Bancorp 0 0 0 0 N/A

Valuation & Earnings

This table compares Hawthorn Bancshares and Sturgis Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawthorn Bancshares $67.12 million 2.47 $10.71 million N/A N/A
Sturgis Bancorp $22.48 million 2.32 $4.37 million N/A N/A

Hawthorn Bancshares has higher revenue and earnings than Sturgis Bancorp.

Institutional and Insider Ownership

28.8% of Hawthorn Bancshares shares are owned by institutional investors. 4.1% of Hawthorn Bancshares shares are owned by insiders. Comparatively, 16.0% of Sturgis Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Hawthorn Bancshares has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Dividends

Hawthorn Bancshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Sturgis Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Hawthorn Bancshares has raised its dividend for 9 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Hawthorn Bancshares 19.13% 11.88% 0.79%
Sturgis Bancorp 20.26% N/A N/A

Summary

Hawthorn Bancshares beats Sturgis Bancorp on 9 of the 12 factors compared between the two stocks.

Hawthorn Bancshares Company Profile

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in Missouri. The company offers checking and savings accounts, and certificates of deposit; and a range of lending services, including commercial and industrial, single payment personal, installment, and commercial and residential real estate loans. It also provides trust services, Internet banking services, brokerage services, safety deposit boxes, and debit cards. The company operates 23 banking offices. Hawthorn Bancshares, Inc. was founded in 1865 and is based in Jefferson City, Missouri.

Sturgis Bancorp Company Profile

Sturgis Bancorp, Inc., a financial holding company, through its subsidiary, Sturgis Bank & Trust, provides banking products and services to individuals and businesses in the United States. The company offers checking, savings, money market, and sweep accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings and CD, personal, auto and recreational vehicle, commercial real estate, equipment and machinery, and government supported loans, as well as home equity lines of credit and business lines of credit. In addition, the company offers mortgage life, mortgage accidental death, and mortgage disability insurance products; and other personal banking services, such as private banking, cashier checks, wire transfers, money orders, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes. Further, it provides Internet and phone banking, Internet bill pay, direct deposit, Visa check card, merchant, CDARS, and remote deposit capture services; and wealth management and investment brokerage advisory services, as well as cash management services and e-statements. The company has branch offices in Bangor, Bronson, Centreville, Climax, Colon, South Haven, Sturgis, Three Rivers, and White Pigeon in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

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