Contrasting Home BancShares (HOMB) & The Competition

Home BancShares (NYSE:HOMB – Get Free Report) is one of 920 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Home BancShares to related companies based on the strength of its profitability, earnings, analyst recommendations, risk, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

67.3% of Home BancShares shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 6.4% of Home BancShares shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Home BancShares and its peers top-line revenue, earnings per share and valuation.

Home BancShares’ peers have higher revenue and earnings than Home BancShares. Home BancShares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Home BancShares pays an annual dividend of $0.92 per share and has a dividend yield of 3.0%. Home BancShares pays out 37.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. Home BancShares has increased its dividend for 15 consecutive years. Home BancShares lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

Analyst Ratings

This is a summary of recent ratings for Home BancShares and its peers, as reported by MarketBeat.com.

Home BancShares currently has a consensus price target of $32.57, indicating a potential upside of 7.00%. As a group, “Banks” companies have a potential upside of 15.74%. Given Home BancShares’ peers higher probable upside, analysts clearly believe Home BancShares has less favorable growth aspects than its peers.

Risk & Volatility

Home BancShares has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Home BancShares’ peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Summary

Home BancShares peers beat Home BancShares on 8 of the 15 factors compared.

Home BancShares Company Profile

(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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