Green Bancorp (GNBC) & Home Bancshares (HOMB) Critical Analysis

Home Bancshares (NASDAQ: HOMB) and Green Bancorp (NASDAQ:GNBC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Risk and Volatility

How to Become a New Pot Stock Millionaire

Home Bancshares has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Green Bancorp has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Home Bancshares and Green Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Bancshares 0 3 3 0 2.50
Green Bancorp 0 2 1 0 2.33

Home Bancshares presently has a consensus target price of $28.08, indicating a potential upside of 16.38%. Green Bancorp has a consensus target price of $25.00, indicating a potential upside of 7.07%. Given Home Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Home Bancshares is more favorable than Green Bancorp.

Dividends

Home Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Green Bancorp does not pay a dividend. Home Bancshares pays out 48.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Home Bancshares 21.79% 11.18% 1.63%
Green Bancorp 17.90% 9.84% 1.07%

Insider & Institutional Ownership

64.9% of Home Bancshares shares are held by institutional investors. Comparatively, 63.3% of Green Bancorp shares are held by institutional investors. 9.2% of Home Bancshares shares are held by insiders. Comparatively, 16.2% of Green Bancorp shares are held 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.

Valuation and Earnings

This table compares Home Bancshares and Green Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Home Bancshares $619.89 million 6.76 $135.08 million $0.91 26.52
Green Bancorp $190.76 million 4.55 $34.13 million $0.92 25.38

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

Summary

Home Bancshares beats Green Bancorp on 12 of the 16 factors compared between the two stocks.

Home Bancshares Company Profile

Home BancShares, Inc. is a bank holding company. The Company is engaged in providing a range of commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals and municipalities through its community bank subsidiary, Centennial Bank (the Bank). It operates through community banking segment. It offers a range of products and services, including Internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, safe deposit boxes, the United States savings bonds and automatic account transfers. The Bank has locations in Arkansas, Florida, South Alabama and New York City. As of September 26, 2017, the Company conducted business principally through 76 branches in Arkansas, 89 branches in Florida, six branches in Alabama and one branch in New York City. It originates loans secured by single and multi-family real estate, residential construction and commercial buildings.

Green Bancorp Company Profile

Green Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company’s subsidiary, Green Bank, N.A., a nationally chartered commercial bank, provided commercial and private banking services primarily to Texas based customers through 22 full service branches in the Houston and Dallas metropolitan statistical areas (MSAs) and other markets. The Company provides banking services to a range of customers. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as extended drive through hours, automated teller machines (ATMs), Bank at Work and banking by telephone, mail and personal appointment. The Company also offers debit cards, night depository, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, wire transfer services and automated clearing house (ACH) services.

Receive News & Ratings for Home Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Home Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.

 


Latest News

Bryce Harper Hits 406-Foot Home Run While Breaking His Bat
Bryce Harper Hits 406-Foot Home Run While Breaking His Bat
Rick Porcello’s Strong Start Gives Boost to Red Sox
Rick Porcello’s Strong Start Gives Boost to Red Sox
Two Bench Clearing Incidents Revive Red Sox-Yankees Rivalry
Two Bench Clearing Incidents Revive Red Sox-Yankees Rivalry
Xander Bogaerts Goes on Red Sox DL
Xander Bogaerts Goes on Red Sox DL
Ohtani Goes Deep in Third Straight Game for Angels
Ohtani Goes Deep in Third Straight Game for Angels
Charlie Blackmon Agrees to Contract Extension with Colorado Rockies
Charlie Blackmon Agrees to Contract Extension with Colorado Rockies


Leave a Reply

 
© 2006-2018 BBNS.