Contrasting Home BancShares (HOMB) and Its Peers

Home BancShares (NYSE:HOMB) is one of 919 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Home BancShares to related businesses based on the strength of its dividends, risk, analyst recommendations, valuation, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

67.3% of Home BancShares shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 6.4% of Home BancShares shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Home BancShares pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Home BancShares pays out 37.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. Home BancShares has raised its dividend for 15 consecutive years. Home BancShares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Home BancShares has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Home BancShares’ competitors have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Home BancShares and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Home BancShares	$1.48 billion	$475.44 million	12.33
Home BancShares Competitors	$37.92 billion	$2.42 billion	17.39

Home BancShares’ competitors have higher revenue and earnings than Home BancShares. Home BancShares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Home BancShares and its competitors’ 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%
Home BancShares Competitors	15.64%	9.43%	0.93%

Analyst Recommendations

This is a summary of recent recommendations for Home BancShares and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home BancShares	0	5	5	0	2.50
Home BancShares Competitors	7470	30199	27769	1466	2.35

Home BancShares currently has a consensus price target of $32.57, indicating a potential upside of 8.25%. As a group, “Banks” companies have a potential upside of 16.18%. Given Home BancShares’ competitors higher possible upside, analysts plainly believe Home BancShares has less favorable growth aspects than its competitors.

Summary

Home BancShares competitors beat Home BancShares on 8 of the 15 factors compared.

Home BancShares Company Profile

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.