WallStSmart

Heritage Commerce Corp (HTBK)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 13370% more annual revenue ($26.35B vs $195.65M). USB leads profitability with a 28.7% profit margin vs 24.4%. HTBK appears more attractively valued with a PEG of 1.50. USB earns a higher WallStSmart Score of 75/100 (B).

HTBK

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 6.5Value: 10.0Quality: 5.0

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTBKUndervalued (+63.5%)

Margin of Safety

+63.5%

Fair Value

$36.50

Current Price

$12.43

$24.07 discount

UndervaluedFair: $36.50Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTBK6 strengths · Avg: 8.8/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

EPS GrowthGrowth
45.2%8/10

Earnings expanding 45.2% YoY

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

HTBK2 concerns · Avg: 3.0/10
Market CapQuality
$765.61M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HTBK

The strongest argument for HTBK centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 24.4% and operating margin at 45.3%. Revenue growth of 17.7% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : HTBK

The primary concerns for HTBK are Market Cap, Return on Equity.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

HTBK profiles as a growth stock while USB is a mature play — different risk/reward profiles.

USB carries more volatility with a beta of 1.04 — expect wider price swings.

HTBK is growing revenue faster at 17.7% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

USB scores higher overall (75/100 vs 74/100), backed by strong 28.7% margins. HTBK offers better value entry with a 63.5% margin of safety. 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 Commerce Corp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Heritage Commerce Corp is the banking holding company for Heritage Bank of Commerce providing various commercial and personal banking services to residents and the business / professional community in California. The company is headquartered in San Jose, California.

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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