Hometrust Bancshares (NASDAQ:HTBI) and Community First Bancshares (NASDAQ:CFBI) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Risk & Volatility

Hometrust Bancshares has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Community First Bancshares has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.

Insider and Institutional Ownership

59.3% of Hometrust Bancshares shares are owned by institutional investors. Comparatively, 3.9% of Community First Bancshares shares are owned by institutional investors. 7.1% of Hometrust Bancshares shares are owned by insiders. Comparatively, 1.3% of Community First Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hometrust Bancshares and Community First Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hometrust Bancshares $160.15 million 3.01 $27.15 million N/A N/A
Community First Bancshares $16.20 million 4.76 $440,000.00 N/A N/A

Hometrust Bancshares has higher revenue and earnings than Community First Bancshares.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hometrust Bancshares and Community First Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hometrust Bancshares 0 0 1 0 3.00
Community First Bancshares 0 0 0 0 N/A

Hometrust Bancshares presently has a consensus target price of $31.00, indicating a potential upside of 18.14%. Given Hometrust Bancshares’ higher possible upside, equities research analysts clearly believe Hometrust Bancshares is more favorable than Community First Bancshares.

Profitability

This table compares Hometrust Bancshares and Community First Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hometrust Bancshares 16.95% 6.53% 0.79%
Community First Bancshares 5.08% 1.09% 0.27%

Dividends

Hometrust Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Community First Bancshares does not pay a dividend.

Summary

Hometrust Bancshares beats Community First Bancshares on 11 of the 12 factors compared between the two stocks.

Hometrust Bancshares Company Profile

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company's loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate lending, construction and development lending, and commercial and industrial loans. It also provides small business administration loans, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services, as well as ground and equipment lease financing to fire departments. As of June 30, 2018, the company operated 43 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.

Community First Bancshares Company Profile

Community First Bancshares, Inc. operates as the holding company for Newton Federal Bank that provides various banking products and services in the United States. The company offers various deposit accounts, including checking accounts, savings accounts, and certificate of deposit accounts. It also provides one-to four-family residential real estate loans, commercial real estate loans, commercial and industrial loans, construction and land loans, indirect automobile loans, and consumer loans, as well as multi-family residential real estate loans, and home equity loans and lines of credit. In addition, the company invests in securities; and offers money transfer and other banking services. It operates through its main and branch office in Covington, Georgia; and loan production offices in Watkinsville and Braselton, Georgia. The company was founded in 1928 and is headquartered in Covington, Georgia. Community First Bancshares, Inc. is a subsidiary of Community First Bancshares, MHC.

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