Macatawa Bank (NASDAQ:MCBC) versus Hilltop (NYSE:HTH) Financial Survey

Hilltop (NYSE:HTHGet Free Report) and Macatawa Bank (NASDAQ:MCBCGet Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Hilltop and Macatawa Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilltop 0 2 0 0 2.00
Macatawa Bank 0 0 2 0 3.00

Hilltop currently has a consensus price target of $32.00, suggesting a potential upside of 8.02%. Macatawa Bank has a consensus price target of $11.75, suggesting a potential upside of 26.21%. Given Macatawa Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Macatawa Bank is more favorable than Hilltop.

Valuation and Earnings

This table compares Hilltop and Macatawa Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilltop $1.57 billion 1.23 $109.65 million $1.69 17.53
Macatawa Bank $132.25 million 2.42 $43.22 million $1.26 7.39

Hilltop has higher revenue and earnings than Macatawa Bank. Macatawa Bank is trading at a lower price-to-earnings ratio than Hilltop, indicating that it is currently the more affordable of the two stocks.


Hilltop pays an annual dividend of $0.68 per share and has a dividend yield of 2.3%. Macatawa Bank pays an annual dividend of $0.36 per share and has a dividend yield of 3.9%. Hilltop pays out 40.2% of its earnings in the form of a dividend. Macatawa Bank pays out 28.6% 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. Hilltop has increased its dividend for 7 consecutive years and Macatawa Bank has increased its dividend for 1 consecutive years. Macatawa Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Hilltop has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Macatawa Bank has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

54.3% of Hilltop shares are held by institutional investors. Comparatively, 41.6% of Macatawa Bank shares are held by institutional investors. 28.9% of Hilltop shares are held by insiders. Comparatively, 8.6% of Macatawa Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.


This table compares Hilltop and Macatawa Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilltop 7.00% 5.20% 0.65%
Macatawa Bank 32.68% 15.99% 1.60%


Macatawa Bank beats Hilltop on 9 of the 17 factors compared between the two stocks.

About Hilltop

(Get Free Report)

Hilltop Holdings Inc. provides business and consumer banking services. It operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, term, agricultural and commercial real estate, equipment loans, and other lending products; and mortgage, commercial and industrial loans, and term and construction finance. It also provides treasury management, asset management, check cards, safe deposit boxes, online banking, bill pay, and overdraft privilege services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts services, as well as automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in originating, syndicating, and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance to arbitrage rebate compliance, portfolio management, and local government investment pool administration; advisory services and products for derivatives and commodities; agricultural insurance; and sells, trades in, and underwrites U.S. government and government agency bonds, corporate bonds, and municipal bonds; mortgage-backed, asset-backed, and commercial mortgage-backed securities and structured products; and provides asset and liability management advisory, clearing, retail, and securities lending services. The Mortgage Origination segment offers fixed and adjustable rate mortgages, jumbo, new construction, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. Hilltop Holdings Inc. was incorporated in 1998 and is based in Dallas, Texas.

About Macatawa Bank

(Get Free Report)

Macatawa Bank Corporation operates as the bank holding company for Macatawa Bank that engages in the provision of commercial and consumer banking and trust services. The company accepts various deposits, such as checking accounts, savings accounts, time deposits, regular and money market savings accounts, certificates of deposit, and demand deposits. Its loan products include commercial and industrial loans comprising loans to finance operations and equipment; commercial real estate loans, which consist of construction and development, multi-family, and other non-residential real estate loans; and residential mortgage loans, as well as consumer loans, including automobile loans, home equity lines of credit and installment loans, home improvement loans, deposit account loans, and other loans for household and personal purposes. The company also offers ATM and debit card processing, cash management, and brokerage services. In addition, it provides asset management, personal trust, and retirement plan services. It serves individuals, businesses, associations, churches, nonprofit organizations, financial institutions, and government authorities. The company was incorporated in 1997 and is based in Holland, Michigan.

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