Contrasting NB Bancorp (NASDAQ:NBBK) and Home Bancorp (NASDAQ:HBCP)

Home Bancorp (NASDAQ:HBCP) and NB Bancorp (NASDAQ:NBBK) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

49.4% of Home Bancorp shares are held by institutional investors. 7.3% of Home Bancorp shares are held by insiders. Comparatively, 1.7% of NB Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Home Bancorp and NB Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancorp	$132.87 million	2.32	$40.24 million	$4.74	7.99
NB Bancorp	$151.02 million	4.32	$9.82 million	N/A	N/A

Home Bancorp has higher earnings, but lower revenue than NB Bancorp.

Profitability

This table compares Home Bancorp and NB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Bancorp	20.66%	10.80%	1.15%
NB Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Home Bancorp and NB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Bancorp	0	1	1	0	2.50
NB Bancorp	0	0	1	0	3.00

Home Bancorp presently has a consensus price target of $41.50, indicating a potential upside of 9.56%. NB Bancorp has a consensus price target of $17.00, indicating a potential upside of 11.26%. Given NB Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe NB Bancorp is more favorable than Home Bancorp.

Summary

Home Bancorp beats NB Bancorp on 6 of the 10 factors compared between the two stocks.

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.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.