Home BancShares (NASDAQ: HOMB) and HomeStreet (NASDAQ:HMST) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Institutional & Insider Ownership
65.7% of Home BancShares shares are held by institutional investors. Comparatively, 77.8% of HomeStreet shares are held by institutional investors. 9.2% of Home BancShares shares are held by company insiders. Comparatively, 1.6% of HomeStreet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Home BancShares pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. HomeStreet does not pay a dividend. Home BancShares pays out 32.6% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for Home BancShares and HomeStreet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Home BancShares presently has a consensus target price of $27.60, suggesting a potential upside of 15.87%. HomeStreet has a consensus target price of $29.04, suggesting a potential upside of 2.44%. Given Home BancShares’ stronger consensus rating and higher probable upside, equities analysts plainly believe Home BancShares is more favorable than HomeStreet.
Risk and Volatility
Home BancShares has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, HomeStreet has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
Valuation & Earnings
This table compares Home BancShares and HomeStreet’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Home BancShares||$619.89 million||6.66||$135.08 million||$1.35||17.64|
|HomeStreet||$549.84 million||1.39||$68.94 million||$1.68||16.88|
Home BancShares has higher revenue and earnings than HomeStreet. HomeStreet is trading at a lower price-to-earnings ratio than Home BancShares, indicating that it is currently the more affordable of the two stocks.
This table compares Home BancShares and HomeStreet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Home BancShares beats HomeStreet on 12 of the 16 factors compared between the two stocks.
Home BancShares Company Profile
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, NOW, 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 also provides Internet banking, mobile banking, 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. As of December 31, 2017, it operated through 170 branch locations, including 76 branches in Arkansas, 88 branches in Florida, 5 branches in Alabama, and 1 branch in New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.
HomeStreet Company Profile
HomeStreet, Inc., together with its subsidiaries, provides various financial services primarily in the Pacific Northwest, California, and Hawaii. The company operates in two segments, Commercial and Consumer Banking, and Mortgage Banking. The Commercial and Consumer Banking segment offers deposit products; non-deposit investment products; and insurance products and cash management services. It also originates consumer loans, single family residential mortgages, loans secured by commercial real estate, construction loans for residential and commercial real estate projects, commercial business loans, and agricultural loans; and bridge loans and permanent loans primarily on single family residences, as well as on office, retail, industrial, and multifamily property types. This segment provides its products and services through bank branches, lending centers, and ATMs, as well as through online, mobile, and telephone banking. The Mortgage Banking segment originates and purchases single family residential mortgage loans for sale in the secondary market. This segment is also involved in the sale of loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. The company also offers insurance products and services for consumers. As of December 31, 2017, it had a network of 59 retail deposit branches located in Washington state, Southern California, Portland, Oregon, and Hawaii; and 44 primary stand-alone home loan centers and 6 primary commercial lending centers. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was founded in 1921 and is headquartered in Seattle, Washington.
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