Analyzing Heartland BancCorp (OTCMKTS:HLAN) and National Australia Bank (OTCMKTS:NABZY)

National Australia Bank (OTCMKTS:NABZY) and Heartland BancCorp (OTCMKTS:HLAN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares National Australia Bank and Heartland BancCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Australia Bank	N/A	N/A	N/A
Heartland BancCorp	18.24%	N/A	N/A

Dividends

National Australia Bank pays an annual dividend of $0.51 per share and has a dividend yield of 4.3%. Heartland BancCorp pays an annual dividend of $3.04 per share and has a dividend yield of 3.5%. Heartland BancCorp pays out 30.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

7.5% of Heartland BancCorp shares are owned by institutional investors. 22.7% of Heartland BancCorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares National Australia Bank and Heartland BancCorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Australia Bank	$33.43 billion	2.22	$4.94 billion	N/A	N/A
Heartland BancCorp	$104.83 million	1.70	$19.52 million	$9.94	8.86

National Australia Bank has higher revenue and earnings than Heartland BancCorp.

Volatility and Risk

National Australia Bank has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Heartland BancCorp has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for National Australia Bank and Heartland BancCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Australia Bank	0	0	0	0	N/A
Heartland BancCorp	0	0	1	0	3.00

Heartland BancCorp has a consensus target price of $100.00, suggesting a potential upside of 13.57%. Given Heartland BancCorp’s higher probable upside, analysts plainly believe Heartland BancCorp is more favorable than National Australia Bank.

Summary

National Australia Bank beats Heartland BancCorp on 6 of the 11 factors compared between the two stocks.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.

About Heartland BancCorp

Heartland BancCorp operates as the bank holding company for Heartland Bank that provides various banking and financial services to individual and corporate customers. The company offers personal and business checking and savings accounts. It also provides various lending solutions comprising agricultural loans, commercial and business lending, home and personal loans, and title services. In addition, the company offers online banking, treasury management, credit and debit card, and mobile wallet services. Further, it provides education planning, insurance, wealth management, and retirement planning services. Heartland BancCorp was founded in 1911 and is based in Whitehall, Ohio.