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HRTG vs MBWM

HRTG
Heritage Insurance Holdings, Inc.
NEUTRAL
Price
$29.90
Market Cap
$918.6M
Sector
Financial Services
AI Confidence
80%
MBWM
Mercantile Bank Corporation
NEUTRAL
Price
$53.26
Market Cap
$920.0M
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
HRTG
4.73
MBWM
9.83
Forward P/E
HRTG
6.08
MBWM
8.93
P/B Ratio
HRTG
1.74
MBWM
1.26
P/S Ratio
HRTG
1.08
MBWM
3.86
EV/EBITDA
HRTG
1.48
MBWM
--

Profitability

Gross Margin
HRTG
42.5%
MBWM
0.0%
Operating Margin
HRTG
41.65%
MBWM
48.09%
Profit Margin
HRTG
23.08%
MBWM
37.22%
ROE
HRTG
49.14%
MBWM
13.56%
ROA
HRTG
7.16%
MBWM
1.38%

Growth

Revenue Growth
HRTG
2.4%
MBWM
9.7%
Earnings Growth
HRTG
226.0%
MBWM
16.1%

Financial Health

Debt/Equity
HRTG
0.2
MBWM
--
Current Ratio
HRTG
0.83
MBWM
--
Quick Ratio
HRTG
0.42
MBWM
--

Dividends

Dividend Yield
HRTG
--
MBWM
2.9%
Payout Ratio
HRTG
0.0%
MBWM
27.42%

AI Verdict

HRTG NEUTRAL

HRTG presents a stark contradiction between extreme valuation attractiveness and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 3/9. While the stock trades at a very low P/E of 4.73 and well below its Graham Number ($49.47), the combination of heavy insider selling and a low current ratio (0.83) suggests significant underlying risk. Explosive earnings growth is not currently supported by organic revenue growth (2.40%), indicating potential non-recurring gains or aggressive accounting. The technical trend is heavily bearish, offsetting the bullish analyst recommendations.

Strengths
Extremely low P/E ratio (4.73) relative to sector averages
Exceptional Return on Equity (ROE) of 49.14%
Strong recent earnings track record with significant beats
Risks
Weak Piotroski F-Score (3/9) indicating poor fundamental health
Aggressive insider selling (15 sell transactions, 0 buys)
Liquidity concerns with a Current Ratio of 0.83 and Quick Ratio of 0.42
MBWM NEUTRAL

MBWM presents a stark contrast between deep value and deteriorating operational health. While the stock trades significantly below its Graham Number ($71.73) and Intrinsic Value ($159.89), the Piotroski F-Score of 3/9 indicates weak financial health and potential fundamental decay. Despite a stellar 25-quarter track record of earnings beats and solid YoY growth, the bearish technical trend and insider selling suggest a lack of immediate catalyst for a price correction toward fair value.

Strengths
Significant undervaluation relative to Graham Number ($71.73) and Intrinsic Value ($159.89)
Exceptional earnings track record with consistent beats over 25 quarters
Strong profitability with a 37.22% profit margin and 13.56% ROE
Risks
Weak operational health as indicated by a Piotroski F-Score of 3/9
Strongly bearish technical trend (10/100)
Bearish insider sentiment with net selling activity

Compare Another Pair

HRTG vs MBWM: Head-to-Head Comparison

This page compares Heritage Insurance Holdings, Inc. (HRTG) and Mercantile Bank Corporation (MBWM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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