HarborOne Bancorp (NASDAQ:HONE – Get Rating) and LINKBANCORP (NASDAQ:LNKB – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
Dividends
HarborOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 3.3%. LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 5.7%. HarborOne Bancorp pays out 34.1% of its earnings in the form of a dividend. LINKBANCORP pays out 107.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HarborOne Bancorp has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
55.0% of HarborOne Bancorp shares are held by institutional investors. Comparatively, 39.8% of LINKBANCORP shares are held by institutional investors. 5.7% of HarborOne Bancorp shares are held by insiders. Comparatively, 26.2% of LINKBANCORP shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HarborOne Bancorp | 0 | 3 | 0 | 0 | 2.00 |
| LINKBANCORP | 0 | 2 | 1 | 0 | 2.33 |
HarborOne Bancorp presently has a consensus price target of $13.75, suggesting a potential upside of 50.77%. LINKBANCORP has a consensus price target of $8.67, suggesting a potential upside of 63.83%. Given LINKBANCORP’s stronger consensus rating and higher possible upside, analysts clearly believe LINKBANCORP is more favorable than HarborOne Bancorp.
Profitability
This table compares HarborOne Bancorp and LINKBANCORP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HarborOne Bancorp | 16.98% | 6.62% | 0.79% |
| LINKBANCORP | 5.57% | 4.31% | 0.49% |
Earnings and Valuation
This table compares HarborOne Bancorp and LINKBANCORP’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HarborOne Bancorp | $229.24 million | 1.85 | $45.59 million | $0.88 | 10.36 |
| LINKBANCORP | $33.86 million | 2.54 | $5.60 million | $0.28 | 18.89 |
HarborOne Bancorp has higher revenue and earnings than LINKBANCORP. HarborOne Bancorp is trading at a lower price-to-earnings ratio than LINKBANCORP, indicating that it is currently the more affordable of the two stocks.
Summary
HarborOne Bancorp beats LINKBANCORP on 9 of the 16 factors compared between the two stocks.
About HarborOne Bancorp
HarborOne Bancorp, Inc. is a bank holding company, which engages in the ownership of all the outstanding stock of HarborOne Bank, a state-chartered trust company. It operates under the HarborOne Bank and HarborOne Mortgage segments. The HarborOne Bank segment focuses on generating the consolidated net interest income and requires the provision for credit losses. The HarborOne Mortgage segment focuses on noninterest income. The company was founded in 2016 and is headquartered in Brockton, MA.
About LINKBANCORP
LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, a full-service state chartered commercial bank in Pennsylvania. The company's deposit products include checking accounts, saving accounts, money market accounts, and certificates of deposits. The company's loan portfolio comprises small business, real estate, agricultural, home equity, consumer lending, commercial, municipal, term, lines of credit, auto, and home mortgage and construction loans. It also provides debit cards, mobile banking, card valet app, e-statements, ATMs, online banking and bill pay, and other services. The company operates through a main office located in Gratz, Pennsylvania, as well as bank offices located in Camp Hill, Gratz, Valley View, Harrisburg, Herndon, Lancaster, Pottsville, Trevorton, West Chester, and Minersville. Pennsylvania. LINKBANCORP, Inc. was incorporated in 2018 and is based in Camp Hill, Pennsylvania.
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