Home Bancorp (NASDAQ: HBCP) and Bank of Commerce (NASDAQ:BOCH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Institutional & Insider Ownership

42.1% of Home Bancorp shares are held by institutional investors. Comparatively, 52.2% of Bank of Commerce shares are held by institutional investors. 15.5% of Home Bancorp shares are held by company insiders. Comparatively, 6.9% of Bank of Commerce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Home Bancorp and Bank of Commerce’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Home Bancorp $78.84 million 4.12 $16.00 million $2.47 17.64
Bank of Commerce $44.60 million 4.16 $5.25 million $0.66 17.27

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

Profitability

This table compares Home Bancorp and Bank of Commerce’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home Bancorp 22.54% 9.72% 1.15%
Bank of Commerce 19.58% 8.66% 0.82%

Dividends

Home Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Bank of Commerce pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Home Bancorp pays out 22.7% of its earnings in the form of a dividend. Bank of Commerce pays out 18.2% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Home Bancorp and Bank of Commerce, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Bancorp 0 2 0 0 2.00
Bank of Commerce 0 1 0 0 2.00

Home Bancorp presently has a consensus target price of $46.00, indicating a potential upside of 5.60%. Bank of Commerce has a consensus target price of $12.00, indicating a potential upside of 5.26%. Given Home Bancorp’s higher probable upside, equities research analysts clearly believe Home Bancorp is more favorable than Bank of Commerce.

Volatility and Risk

Home Bancorp has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Bank of Commerce has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

Home Bancorp beats Bank of Commerce on 10 of the 14 factors compared between the two stocks.

Home Bancorp Company Profile

Home Bancorp, Inc. is a bank holding company for Home Bank, N.A. (the Bank). The Bank conducts business through banking offices in the Greater Lafayette, Baton Rouge, Greater New Orleans and Northshore (of Lake Pontchartrain) regions of south Louisiana and the Natchez and Vicksburg regions of west Mississippi. The Bank is engaged in attracting deposits from the general public and using those funds to invest in loans and securities. The Bank originates loans, including one- to four-family first mortgage loans, home equity loans and lines, construction and land loans, multi-family residential loans and consumer loans. The Bank’s lending activities include loans secured by commercial real estate loans, and commercial and industrial loans. In addition to commercial real estate and commercial and industrial loans, the Bank holds a portfolio of construction and land loans.

Bank of Commerce Company Profile

Bank of Commerce Holdings (Holding Company) is a bank holding company. The Company’s principal business is to serve as a holding company for Redding Bank of Commerce (Bank), which operates under two separate names (Redding Bank of Commerce and Sacramento Bank of Commerce). The Bank operates over four full service facilities in two diverse markets in Northern California. The Bank provides a range of financial services and products for business and retail customers. Its principal products include various types of accounts, such as checking, interest-bearing checking, savings, certificate of deposit and money market deposit. It also offers sweep arrangements, commercial loans, construction loans, term loans, safe deposit boxes and electronic banking services. The primary focus of the Bank is to provide banking and related services to small and mid-sized businesses and not-for-profit organizations, as well as banking services for consumers, primarily business owners and their employees.

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