Civista Bancshares (NASDAQ:CIVB – Get Free Report) and Home Bancorp (NASDAQ:HBCP – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings for Civista Bancshares and Home Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Civista Bancshares | 0 | 3 | 3 | 0 | 2.50 |
| Home Bancorp | 0 | 3 | 2 | 0 | 2.40 |
Civista Bancshares presently has a consensus target price of $30.25, indicating a potential upside of 5.88%. Home Bancorp has a consensus target price of $65.17, indicating a potential upside of 6.24%. Given Home Bancorp’s higher possible upside, analysts clearly believe Home Bancorp is more favorable than Civista Bancshares.
Insider & Institutional Ownership
52.1% of Civista Bancshares shares are owned by institutional investors. Comparatively, 49.4% of Home Bancorp shares are owned by institutional investors. 1.6% of Civista Bancshares shares are owned by company insiders. Comparatively, 6.2% of Home Bancorp shares are owned 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 Civista Bancshares and Home Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Civista Bancshares | 21.82% | 10.97% | 1.41% |
| Home Bancorp | 21.05% | 10.01% | 1.25% |
Earnings & Valuation
This table compares Civista Bancshares and Home Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Civista Bancshares | $254.95 million | 2.33 | $46.21 million | $2.79 | 10.24 |
| Home Bancorp | $209.23 million | 2.30 | $46.06 million | $5.67 | 10.82 |
Civista Bancshares has higher revenue and earnings than Home Bancorp. Civista Bancshares is trading at a lower price-to-earnings ratio than Home Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Civista Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.5%. Home Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Civista Bancshares pays out 25.8% of its earnings in the form of a dividend. Home Bancorp pays out 22.6% 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. Civista Bancshares has increased its dividend for 4 consecutive years and Home Bancorp has increased its dividend for 10 consecutive years.
Risk and Volatility
Civista Bancshares has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Home Bancorp has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Summary
Civista Bancshares beats Home Bancorp on 11 of the 17 factors compared between the two stocks.
About Civista Bancshares
Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that provides community banking services. It collects a range of customer deposits; and offers commercial and agriculture, commercial and residential real estate, farm real estate, real estate construction, consumer, and other loans, as well as letters of credit. The company also holds and manages securities portfolio; leases general equipment; and provides captive insurance products. It operates in North Central, West Central, South Western Ohio, South Eastern Indiana, and Northern Kentucky. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is headquartered in Sandusky, Ohio.
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.
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