Comparing Home BancShares (HOMB) & The Competition

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

Insider & Institutional Ownership

67.3% of Home BancShares shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 6.4% of Home BancShares shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Home BancShares pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. 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 9.5% and pay out 28.9% of their earnings in the form of a dividend. Home BancShares has raised its dividend for 15 consecutive years. Home BancShares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Home BancShares has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Home BancShares’ competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares Home BancShares and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Home BancShares	$1.48 billion	$475.44 million	12.20
Home BancShares Competitors	$9.93 billion	$2.41 billion	18.77

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Home BancShares	32.36%	11.14%	2.08%
Home BancShares Competitors	15.63%	9.48%	0.93%

Analyst Recommendations

This is a breakdown of recent ratings for Home BancShares and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home BancShares	0	5	5	0	2.50
Home BancShares Competitors	7458	30159	27706	1451	2.35

Home BancShares presently has a consensus target price of $32.57, suggesting a potential upside of 9.45%. As a group, “Banks” companies have a potential upside of 17.33%. Given Home BancShares’ competitors higher possible upside, analysts clearly believe Home BancShares has less favorable growth aspects than its competitors.

Summary

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

About Home BancShares

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.