Home BancShares (NASDAQ: HOMB) is one of 207 public companies in the “Commercial Banks” industry, but how does it compare to its peers? We will compare Home BancShares to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk and Volatility

Home BancShares has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Home BancShares’ peers have a beta of 0.74, meaning that their average share price is 26% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Home BancShares $500.41 million N/A 19.06
Home BancShares Competitors N/A N/A 25.45

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.

Dividends

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.

Institutional & Insider Ownership

60.6% of Home BancShares shares are owned by institutional investors. Comparatively, 46.6% of shares of all “Commercial Banks” companies are owned by institutional investors. 11.3% of Home BancShares shares are owned by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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 33.97% 13.77% 1.85%
Home BancShares Competitors 19.67% 8.36% 0.88%

Analyst Ratings

This is a summary of current ratings and price targets for Home BancShares and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home BancShares 0 3 3 0 2.50
Home BancShares Competitors 367 2871 2350 69 2.37

Home BancShares presently has a consensus price target of $28.70, suggesting a potential upside of 12.37%. As a group, “Commercial Banks” companies have a potential upside of 0.61%. Given Home BancShares’ stronger consensus rating and higher probable upside, equities analysts clearly believe Home BancShares is more favorable than its peers.

Summary

Home BancShares beats its peers on 10 of the 14 factors compared.

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 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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