Home Capital Group (HMCBF) vs. Its Peers Critical Survey

Earnings & Valuation

This table compares Home Capital Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Home Capital Group	N/A	N/A	8.00
Home Capital Group Competitors	$6.21 billion	$1.05 billion	13.54

Home Capital Group’s peers have higher revenue and earnings than Home Capital Group. Home Capital Group 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Home Capital Group	N/A	N/A	N/A
Home Capital Group Competitors	-379.72%	-25.71%	-7.39%

Dividends

Home Capital Group pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Home Capital Group pays out 15.7% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 3.9% and pay out -99.6% of their earnings in the form of a dividend. Home Capital Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

37.0% of Home Capital Group shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Financial Services” companies are owned by institutional investors. 21.8% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Home Capital Group peers beat Home Capital Group on 6 of the 9 factors compared.

Home Capital Group Company Profile

Home Capital Group Inc., through its subsidiary, Home Trust Company, provides residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending, and credit card services in Canada. The company provides various lending and savings solutions. It offers deposits through brokers and financial planners under the Oaken Financial brand. The company also provides credit card and line of credit services, include Equityline Visa product, a home equity line of credit that is secured by residential property; and cash-secured and unsecured credit card products. In addition, it offers consumer retail lending services for durable household goods, such as water heaters and larger-ticket home improvement items; and consumer loans. Further, the company manages a treasury portfolio. The company was founded in 1986 and is based in Toronto, Canada. As of August 31, 2023, Home Capital Group Inc. operates as a subsidiary of 1000355080 Ontario Inc.