Home BancShares (NYSE:HOMB) & International Bancshares (NASDAQ:IBOC) Head to Head Contrast

Home BancShares (NYSE:HOMB) and International Bancshares (NASDAQ:IBOC) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Dividends

Home BancShares pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.2%. Home BancShares pays out 37.7% of its earnings in the form of a dividend. International Bancshares pays out 22.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Home BancShares has increased its dividend for 15 consecutive years and International Bancshares has increased its dividend for 16 consecutive years.

Volatility and Risk

Home BancShares has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Home BancShares and International Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home BancShares	0	5	5	0	2.50
International Bancshares	0	0	1	0	3.00

Home BancShares currently has a consensus price target of $32.57, suggesting a potential upside of 9.45%. International Bancshares has a consensus price target of $85.00, suggesting a potential upside of 27.13%. Given International Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe International Bancshares is more favorable than Home BancShares.

Insider & Institutional Ownership

67.3% of Home BancShares shares are owned by institutional investors. Comparatively, 65.9% of International Bancshares shares are owned by institutional investors. 6.4% of Home BancShares shares are owned by insiders. Comparatively, 13.1% of International Bancshares shares 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.

Earnings and Valuation

This table compares Home BancShares and International Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home BancShares	$1.48 billion	4.03	$475.44 million	$2.44	12.20
International Bancshares	$1.06 billion	3.94	$412.29 million	$6.63	10.08

Home BancShares has higher revenue and earnings than International Bancshares. International Bancshares is trading at a lower price-to-earnings ratio than Home BancShares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Home BancShares and International Bancshares’ 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%
International Bancshares	38.83%	12.67%	2.47%

Summary

International Bancshares beats Home BancShares on 9 of the 17 factors compared between the two stocks.

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.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.