Sifting through countless of stocks in the Banks industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Hilltop Holdings Inc. or First Merchants Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Hilltop Holdings Inc. and First Merchants Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Hilltop Holdings Inc. and First Merchants Corporation

Hilltop Holdings Inc. provides business and consumer banking services. The company 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 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 headquartered in Dallas, Texas.

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides commercial and consumer banking services. The company offers a range of financial services, including checking, savings, and deposit products; debit and credit cards; mortgages, refinance, construction or renovation of residential properties, agricultural lending, treasury management services and depository products. It also provides personal and commercial wealth management services, brokerage, investment management, private banking, fiduciary estate, and financial planning services. The company operates banking locations in Indiana, Ohio, and Michigan counties. It offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.

Latest Banks and Hilltop Holdings Inc., First Merchants Corporation Stock News

As of September 2, 2026, Hilltop Holdings Inc. had a $2.2 billion market capitalization, compared to the Banks median of $750.0 million. Hilltop Holdings Inc.’s stock is up 15.3% in 2026, up 1.5% in the previous five trading days and up 10.34% in the past year.

Currently, Hilltop Holdings Inc.’s price-earnings ratio is 14.3. Hilltop Holdings Inc.’s trailing 12-month revenue is $1.3 billion with a 12.7% net profit margin. Year-over-year quarterly sales growth most recently was 5.2%. Analysts expect adjusted earnings to reach $2.407 per share for the current fiscal year. Hilltop Holdings Inc. currently has a 2.3% dividend yield.

As of September 2, 2026, First Merchants Corporation had a $2.6 billion market cap, putting it in the 57th percentile of all stocks. First Merchants Corporation’s stock is up 12.3% in 2026, up 1% in the previous five trading days and up 1.04% in the past year.

Currently, First Merchants Corporation’s price-earnings ratio is 13.5. First Merchants Corporation’s trailing 12-month revenue is $642.2 million with a 29.0% net profit margin. Year-over-year quarterly sales growth most recently was 2.8%. Analysts expect adjusted earnings to reach $3.863 per share for the current fiscal year. First Merchants Corporation currently has a 3.6% dividend yield.

How We Compare Hilltop Holdings Inc. and First Merchants Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Hilltop Holdings Inc. and First Merchants Corporation’s stock grades to see how they measure up against one another.

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Hilltop Holdings Inc. and First Merchants Corporation’s Quality Grades

Company	Ticker	Quality
Hilltop Holdings Inc.	HTH	D
First Merchants Corporation	FRME	F

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Hilltop Holdings Inc. has a Quality Score of 21, which is Weak. First Merchants Corporation has a Quality Score of 7, which is Very Weak.

The Quality Stock Winner: No Clear Winner

Neither Hilltop Holdings Inc. or First Merchants Corporation has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Hilltop Holdings Inc. or First Merchants Corporation is the better investment when it comes to quality.

Hilltop Holdings Inc. and First Merchants Corporation’s Momentum Grades

Company	Ticker	Momentum
Hilltop Holdings Inc.	HTH	C
First Merchants Corporation	FRME	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Hilltop Holdings Inc. has a Momentum Score of 48, which is Average. First Merchants Corporation has a Momentum Score of 43, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither Hilltop Holdings Inc. or First Merchants Corporation has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Hilltop Holdings Inc. or First Merchants Corporation is the better investment when it comes to momentum.

Hilltop Holdings Inc. and First Merchants Corporation’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Hilltop Holdings Inc.	HTH	C
First Merchants Corporation	FRME	D

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Hilltop Holdings Inc. has a Earnings Estimate Score of 55, which is Neutral. First Merchants Corporation has a Earnings Estimate Score of 34, which is Negative.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Hilltop Holdings Inc. or First Merchants Corporation has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Hilltop Holdings Inc. or First Merchants Corporation is the better investment when it comes to estimate revisions.

Other Hilltop Holdings Inc. and First Merchants Corporation Grades

In addition to Estimate Revisions, Quality and Momentum, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Hilltop Holdings Inc. and First Merchants Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Hilltop Holdings Inc. or First Merchants Corporation Stock?

Overall, Hilltop Holdings Inc. stock has a Momentum Score of 48, Estimate Revisions Score of 55 and Quality Score of 21.

First Merchants Corporation stock has a Momentum Score of 43, Estimate Revisions Score of 34 and Quality Score of 7.

Comparing Hilltop Holdings Inc. and First Merchants Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.