Home Bancorp (NASDAQ:HBCP – Get Free Report) and C&F Financial (NASDAQ:CFFI – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Dividends
Home Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. C&F Financial pays an annual dividend of $1.92 per share and has a dividend yield of 2.0%. Home Bancorp pays out 21.4% of its earnings in the form of a dividend. C&F Financial pays out 21.4% 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. Home Bancorp has increased its dividend for 10 consecutive years and C&F Financial has increased its dividend for 1 consecutive years.
Profitability
This table compares Home Bancorp and C&F Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Home Bancorp | 22.23% | 10.65% | 1.32% |
| C&F Financial | 14.91% | 10.72% | 1.02% |
Insider & Institutional Ownership
Earnings & Valuation
This table compares Home Bancorp and C&F Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Home Bancorp | $209.23 million | 2.59 | $46.06 million | $5.98 | 11.58 |
| C&F Financial | $186.13 million | 1.66 | $26.83 million | $8.96 | 10.60 |
Home Bancorp has higher revenue and earnings than C&F Financial. C&F Financial is trading at a lower price-to-earnings ratio than Home Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Home Bancorp has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, C&F Financial has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Home Bancorp and C&F Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Home Bancorp | 0 | 3 | 1 | 1 | 2.60 |
| C&F Financial | 0 | 0 | 1 | 0 | 3.00 |
Home Bancorp presently has a consensus price target of $69.50, indicating a potential upside of 0.40%. Given Home Bancorp’s higher probable upside, equities analysts clearly believe Home Bancorp is more favorable than C&F Financial.
Summary
Home Bancorp beats C&F Financial on 12 of the 17 factors compared between the two stocks.
About Home Bancorp
Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana, Mississippi, and Texas. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products comprising one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers credit cards and online banking services. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.
About C&F Financial
C&F Financial Corp. is a bank holding company, which engages in the provision of banking services to individuals and businesses. It operates through the following segments: Community Banking, Mortgage Banking and Consumer Finance. The Community Banking segment provides checking and savings deposit accounts, business, real estate, development, mortgage, home equity, and installment loans. The Mortgage Banking segment offers ancillary mortgage loan origination services for loan settlement and residential appraisals. The Consumer Finance segment consists of automobile financing through lending programs that are designed to serve customers in the non-prime market who have limited access to traditional automobile financing. The company was founded on March 8, 1994 and is headquartered in Toano, VA.
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