Financial Contrast: Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) and International Bancshares (NASDAQ:IBOC)

International Bancshares (NASDAQ:IBOC) and Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

65.9% of International Bancshares shares are owned by institutional investors. Comparatively, 21.1% of Home Federal Bancorp, Inc. of Louisiana shares are owned by institutional investors. 13.1% of International Bancshares shares are owned by company insiders. Comparatively, 19.4% of Home Federal Bancorp, Inc. of Louisiana shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for International Bancshares and Home Federal Bancorp, Inc. of Louisiana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
Home Federal Bancorp, Inc. of Louisiana	0	1	0	0	2.00

International Bancshares currently has a consensus price target of $85.00, suggesting a potential upside of 20.40%. Given International Bancshares’ stronger consensus rating and higher probable upside, research analysts plainly believe International Bancshares is more favorable than Home Federal Bancorp, Inc. of Louisiana.

Dividends

International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.1%. Home Federal Bancorp, Inc. of Louisiana pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. International Bancshares pays out 22.0% of its earnings in the form of a dividend. Home Federal Bancorp, Inc. of Louisiana pays out 30.0% 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. International Bancshares has raised its dividend for 16 consecutive years and Home Federal Bancorp, Inc. of Louisiana has raised its dividend for 11 consecutive years.

Valuation and Earnings

This table compares International Bancshares and Home Federal Bancorp, Inc. of Louisiana”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.06 billion	4.16	$412.29 million	$6.63	10.65
Home Federal Bancorp, Inc. of Louisiana	$35.17 million	2.12	$6.17 million	$2.00	12.25

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

Profitability

This table compares International Bancshares and Home Federal Bancorp, Inc. of Louisiana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	38.83%	12.67%	2.47%
Home Federal Bancorp, Inc. of Louisiana	17.56%	10.75%	0.98%

Risk & Volatility

International Bancshares has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Home Federal Bancorp, Inc. of Louisiana has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Summary

International Bancshares beats Home Federal Bancorp, Inc. of Louisiana on 14 of the 17 factors compared between the two stocks.

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.

About Home Federal Bancorp, Inc. of Louisiana

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank that provides various financial services to individuals, corporate entities, and other organizations. The company accepts various deposits, such as passbook savings, certificates of deposit, and demand deposit accounts. Its loan products include one-to-four family residential real estate loans; commercial real estate secured loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; lines of credit; and consumer non-real estate loans, including loans secured by deposit accounts, automobile loans, overdrafts, and other unsecured loans. The company operates through branches in Shreveport, Bossier City, Minden, and Benton, Louisiana. The company was founded in 1924 and is based in Shreveport, Louisiana.