Comparing Home BancShares (HOMB) and Its Competitors

Home BancShares (NASDAQ: HOMB) is one of 207 public companies in the “Commercial Banks” industry, but how does it compare to its competitors? We will compare Home BancShares to similar businesses based on the strength of its profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Dividends

Home BancShares pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. Home BancShares pays out 32.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

49.8% of Home BancShares shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 11.3% of Home BancShares shares are owned by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Home BancShares and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Home BancShares $500.41 million N/A 19.13
Home BancShares Competitors N/A N/A 25.62

Home BancShares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for Home BancShares and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home BancShares 0 3 3 0 2.50
Home BancShares Competitors 380 2904 2379 70 2.37

Home BancShares presently has a consensus target price of $28.70, suggesting a potential upside of 11.93%. As a group, “Commercial Banks” companies have a potential upside of 0.17%. Given Home BancShares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Home BancShares is more favorable than its competitors.

Profitability

This table compares Home BancShares and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home BancShares 33.97% 13.77% 1.85%
Home BancShares Competitors 19.73% 8.36% 0.88%

Risk & Volatility

Home BancShares has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Home BancShares’ competitors have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Summary

Home BancShares beats its competitors on 10 of the 14 factors compared.

About Home BancShares

Home BancShares, Inc. is a bank holding company. The Company is engaged in providing a range of commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals and municipalities through its community bank subsidiary, Centennial Bank (the Bank). It operates through community banking segment. It offers a range of products and services, including Internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, safe deposit boxes, the United States savings bonds and automatic account transfers. The Bank has locations in Arkansas, Florida, South Alabama and New York City. As of December 31, 2016, the Company conducted business principally through 76 branches in Arkansas, 59 branches in Florida, six branches in Alabama and one branch in New York City. It originates loans secured by single and multi-family real estate, residential construction and commercial buildings.

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