Financial Contrast: Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) and Texas Capital Bancshares (NASDAQ:TCBIO)

Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) and Texas Capital Bancshares (NASDAQ:TCBIO) are both financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

67.3% of Home Bancshares, Inc. (Conway, AR) shares are held by institutional investors. 7.7% of Home Bancshares, Inc. (Conway, AR) shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Home Bancshares, Inc. (Conway, AR) and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Bancshares, Inc. (Conway, AR)	28.17%	10.52%	1.75%
Texas Capital Bancshares	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Home Bancshares, Inc. (Conway, AR) and Texas Capital Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Bancshares, Inc. (Conway, AR)	0	2	2	0	2.50
Texas Capital Bancshares	0	0	0	0	N/A

Home Bancshares, Inc. (Conway, AR) presently has a consensus target price of $26.00, suggesting a potential upside of 6.47%. Given Home Bancshares, Inc. (Conway, AR)’s higher probable upside, equities research analysts clearly believe Home Bancshares, Inc. (Conway, AR) is more favorable than Texas Capital Bancshares.

Dividends

Home Bancshares, Inc. (Conway, AR) pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Texas Capital Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 7.6%. Home Bancshares, Inc. (Conway, AR) pays out 37.1% of its earnings in the form of a dividend. Home Bancshares, Inc. (Conway, AR) has raised its dividend for 13 consecutive years.

Valuation & Earnings

This table compares Home Bancshares, Inc. (Conway, AR) and Texas Capital Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancshares, Inc. (Conway, AR)	$976.08 million	5.03	$392.93 million	$1.94	12.59
Texas Capital Bancshares	$1.06 billion	N/A	N/A	N/A	N/A

Home Bancshares, Inc. (Conway, AR) has higher earnings, but lower revenue than Texas Capital Bancshares.

Summary

Home Bancshares, Inc. (Conway, AR) beats Texas Capital Bancshares on 8 of the 11 factors compared between the two stocks.

About Home Bancshares, Inc. (Conway, AR)

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. It operates through branches in Arkansas, Florida, Alabama, Texas, and New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.