Truist Financial (NYSE:TFC – Get Free Report) and Harleysville Financial (OTCMKTS:HARL – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Risk and Volatility
Truist Financial has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Harleysville Financial has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Truist Financial and Harleysville Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Truist Financial | 0 | 11 | 11 | 0 | 2.50 |
| Harleysville Financial | 0 | 0 | 0 | 0 | 0.00 |
Dividends
Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.4%. Harleysville Financial pays an annual dividend of $1.24 per share and has a dividend yield of 5.5%. Truist Financial pays out -145.5% of its earnings in the form of a dividend. Harleysville Financial pays out 51.0% 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. Truist Financial has increased its dividend for 13 consecutive years.
Insider and Institutional Ownership
71.3% of Truist Financial shares are held by institutional investors. Comparatively, 1.2% of Harleysville Financial shares are held by institutional investors. 0.2% of Truist Financial shares are held by insiders. Comparatively, 14.5% of Harleysville Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Truist Financial and Harleysville Financial”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Truist Financial | $16.47 billion | 3.81 | -$1.09 billion | ($1.43) | -33.03 |
| Harleysville Financial | $40.39 million | 2.02 | $2.05 million | $2.43 | 9.24 |
Harleysville Financial has lower revenue, but higher earnings than Truist Financial. Truist Financial is trading at a lower price-to-earnings ratio than Harleysville Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Truist Financial and Harleysville Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Truist Financial | -4.89% | 9.35% | 0.98% |
| Harleysville Financial | 22.05% | 10.38% | 1.03% |
Summary
Truist Financial beats Harleysville Financial on 9 of the 17 factors compared between the two stocks.
About Truist Financial
Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.
About Harleysville Financial
Harleysville Financial Corporation operates as the bank holding company for Harleysville Bank that provides various banking products and services in Pennsylvania. The company offers various deposit products, including savings, money market, and checking accounts, as well as certificates of deposits. It also provides consumer loans, including residential mortgages, savings account loans, and home equity line of credit, construction, and non-real estate consumer loans; and commercial loans, such as commercial mortgages, line of credit, and commercial business loans. In addition, the company offers online banking and bill payment, mobile and telephone banking, remote deposit, debit cards, automated clearing house processing, sweep accounts, zero balance accounts, employee services, and other cash management services. Further, it provides investment services, such as financial consultation, cash and wealth management, education planning, investment strategy, insurance, retirement and estate planning, financial and goal planning, and asset allocation services, as well as offers investment products, such as fixed and variable annuities, mutual funds, life insurances, stocks and bonds, tax-advantaged investments, long-term care insurances, disability insurances, retirement plans/individual retirement accounts, wrap accounts, and unit investment trusts. Its primary market area includes Montgomery County and Bucks County. The company was formerly known as Harleysville Savings Financial Corporation and changed its name to Harleysville Financial Corporation in May 2017. Harleysville Financial Corporation was founded in 1915 and is headquartered in Harleysville, Pennsylvania.
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