Home BancShares (NYSE:HOMB – Get Free Report) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.
Profitability
This table compares Home BancShares and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Home BancShares | 32.10% | 11.12% | 2.07% |
| Svenska Handelsbanken Ab Publ | 17.75% | 14.30% | 0.72% |
Institutional & Insider Ownership
67.3% of Home BancShares shares are held by institutional investors. 6.4% of Home BancShares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Home BancShares | $1.48 billion | 4.08 | $475.44 million | $2.42 | 12.46 |
| Svenska Handelsbanken Ab Publ | $21.75 billion | 1.43 | $2.42 billion | $0.71 | 11.04 |
Svenska Handelsbanken Ab Publ has higher revenue and earnings than Home BancShares. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than Home BancShares, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Home BancShares and Svenska Handelsbanken Ab Publ, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Home BancShares | 0 | 4 | 4 | 0 | 2.50 |
| Svenska Handelsbanken Ab Publ | 4 | 1 | 0 | 0 | 1.20 |
Home BancShares currently has a consensus price target of $32.83, indicating a potential upside of 8.86%. Given Home BancShares’ stronger consensus rating and higher possible upside, analysts plainly believe Home BancShares is more favorable than Svenska Handelsbanken Ab Publ.
Dividends
Home BancShares pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 7.4%. Home BancShares pays out 38.0% of its earnings in the form of a dividend. Svenska Handelsbanken Ab Publ pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Home BancShares has raised its dividend for 15 consecutive years.
Volatility & Risk
Home BancShares has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
Summary
Home BancShares beats Svenska Handelsbanken Ab Publ on 13 of the 17 factors compared between the two stocks.
About Home BancShares
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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 Svenska Handelsbanken Ab Publ
Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.
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