Contrasting First BanCorp. (NYSE:FBP) & Home BancShares (NYSE:HOMB)

First BanCorp. (NYSE:FBP – Get Free Report) and Home BancShares (NYSE:HOMB – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Institutional & Insider Ownership

97.9% of First BanCorp. shares are held by institutional investors. Comparatively, 67.3% of Home BancShares shares are held by institutional investors. 1.9% of First BanCorp. shares are held by company insiders. Comparatively, 6.4% of Home BancShares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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Earnings and Valuation

This table compares First BanCorp. and Home BancShares”s top-line revenue, earnings per share and valuation.

Home BancShares has higher revenue and earnings than First BanCorp.. First BanCorp. is trading at a lower price-to-earnings ratio than Home BancShares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First BanCorp. and Home BancShares’ net margins, return on equity and return on assets.

Volatility and Risk

First BanCorp. has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Home BancShares has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for First BanCorp. and Home BancShares, as provided by MarketBeat.com.

First BanCorp. presently has a consensus target price of $25.86, suggesting a potential downside of 2.59%. Home BancShares has a consensus target price of $31.20, suggesting a potential upside of 8.71%. Given Home BancShares’ higher probable upside, analysts plainly believe Home BancShares is more favorable than First BanCorp..

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Home BancShares pays an annual dividend of $0.84 per share and has a dividend yield of 2.9%. First BanCorp. pays out 35.6% of its earnings in the form of a dividend. Home BancShares pays out 34.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. First BanCorp. has increased its dividend for 6 consecutive years and Home BancShares has increased its dividend for 15 consecutive years.

Summary

Home BancShares beats First BanCorp. on 11 of the 18 factors compared between the two stocks.

About First BanCorp.

(Get Free Report)

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

About Home BancShares

(Get Free Report)

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.

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