Head-To-Head Analysis: Home Bancorp (NASDAQ:HBCP) & Fifth District Bancorp (NASDAQ:FDSB)

Home Bancorp (NASDAQ:HBCP) and Fifth District Bancorp (NASDAQ:FDSB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Home Bancorp and Fifth District Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Bancorp	0	3	1	1	2.60
Fifth District Bancorp	0	1	0	0	2.00

Home Bancorp currently has a consensus target price of $65.50, indicating a potential downside of 5.51%. Given Home Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Home Bancorp is more favorable than Fifth District Bancorp.

Earnings & Valuation

This table compares Home Bancorp and Fifth District Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancorp	$209.23 million	2.60	$46.06 million	$5.95	11.65
Fifth District Bancorp	$26.49 million	3.30	$4.09 million	$0.87	19.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Home Bancorp	22.18%	10.86%	1.32%
Fifth District Bancorp	16.35%	3.37%	0.82%

Institutional & Insider Ownership

49.4% of Home Bancorp shares are owned by institutional investors. 6.2% of Home Bancorp shares are owned by company insiders. Comparatively, 8.6% of Fifth District Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Home Bancorp has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Fifth District Bancorp has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Summary

Home Bancorp beats Fifth District Bancorp on 12 of the 15 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 Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.