WallStSmart

Heritage Financial Corporation (HFWA)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 9934% more annual revenue ($26.65B vs $265.57M). USB leads profitability with a 29.3% profit margin vs 27.3%. USB appears more attractively valued with a PEG of 2.12. HFWA earns a higher WallStSmart Score of 71/100 (B).

HFWA

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 7.0Value: 5.7Quality: 7.5
Piotroski: 7/9Altman Z: 0.40

USB

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HFWA6 strengths · Avg: 9.5/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

Revenue GrowthGrowth
37.2%10/10

Revenue surging 37.2% year-over-year

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
27.3%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

USB6 strengths · Avg: 8.7/10
Operating MarginProfitability
37.8%10/10

Strong operational efficiency at 37.8%

Market CapQuality
$90.02B9/10

Large-cap with strong market position

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.34B8/10

Generating 1.3B in free cash flow

Areas to Watch

HFWA4 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Altman Z-ScoreHealth
0.402/10

Distress zone — elevated risk

USB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Debt/EquityHealth
1.203/10

Elevated debt levels

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HFWA

The strongest argument for HFWA centers on Price/Book, Operating Margin, Revenue Growth. Profitability is solid with margins at 27.3% and operating margin at 32.3%. Revenue growth of 37.2% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.

Bear Case : HFWA

The primary concerns for HFWA are PEG Ratio, Market Cap, Return on Equity.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

HFWA profiles as a growth stock while USB is a value play — different risk/reward profiles.

USB carries more volatility with a beta of 1.00 — expect wider price swings.

HFWA is growing revenue faster at 37.2% — sustainability is the question.

USB generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

HFWA scores higher overall (71/100 vs 69/100), backed by strong 27.3% margins and 37.2% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Heritage Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Heritage Financial Corporation is the banking holding company for Heritage Bank providing various financial services to small and medium-sized businesses and individuals in the United States. The company is headquartered in Olympia, Washington.

U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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