Home BancShares (NASDAQ: HOMB) is one of 207 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its peers? We will compare Home BancShares to related businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
49.8% of Home BancShares shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 11.3% of Home BancShares shares are owned by insiders. Comparatively, 11.6% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Home BancShares and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Home BancShares Competitors||19.80%||8.37%||0.88%|
Home BancShares pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. Home BancShares pays out 32.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend.
Valuation and Earnings
This table compares Home BancShares and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Home BancShares||$500.41 million||N/A||19.22|
|Home BancShares Competitors||N/A||N/A||25.71|
Home BancShares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent recommendations for Home BancShares and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Home BancShares Competitors||380||2913||2382||70||2.37|
Home BancShares presently has a consensus target price of $28.70, suggesting a potential upside of 11.46%. As a group, “Commercial Banks” companies have a potential upside of 0.56%. Given Home BancShares’ stronger consensus rating and higher possible upside, analysts plainly believe Home BancShares is more favorable than its peers.
Risk & Volatility
Home BancShares has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Home BancShares’ peers have a beta of 0.74, suggesting that their average share price is 26% less volatile than the S&P 500.
Home BancShares beats its peers on 10 of the 14 factors compared.
About Home BancShares
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 December 31, 2016, the Company conducted business principally through 76 branches in Arkansas, 59 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.
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