Reviewing GrandSouth Bancorporation (OTCMKTS:GRRB) and Home BancShares (NYSE:HOMB)

GrandSouth Bancorporation (OTCMKTS:GRRB) and Home BancShares (NYSE:HOMB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares GrandSouth Bancorporation and Home BancShares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrandSouth Bancorporation	N/A	N/A	N/A
Home BancShares	32.48%	11.11%	2.05%

Institutional & Insider Ownership

67.3% of Home BancShares shares are owned by institutional investors. 33.3% of GrandSouth Bancorporation shares are owned by insiders. Comparatively, 6.4% of Home BancShares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GrandSouth Bancorporation and Home BancShares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrandSouth Bancorporation	0	0	0	0	0.00
Home BancShares	0	5	2	0	2.29

Home BancShares has a consensus price target of $31.20, suggesting a potential upside of 8.54%. Given Home BancShares’ stronger consensus rating and higher probable upside, analysts plainly believe Home BancShares is more favorable than GrandSouth Bancorporation.

Earnings and Valuation

This table compares GrandSouth Bancorporation and Home BancShares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrandSouth Bancorporation	N/A	N/A	N/A	N/A	N/A
Home BancShares	$1.48 billion	3.92	$475.44 million	$2.43	11.83

Home BancShares has higher revenue and earnings than GrandSouth Bancorporation.

Summary

Home BancShares beats GrandSouth Bancorporation on 8 of the 9 factors compared between the two stocks.

About GrandSouth Bancorporation

GrandSouth Bancorporation operates as the bank holding company for GrandSouth Bank that provides banking services to individuals and businesses. It accepts checking accounts, savings accounts, money market accounts, various term certificates of deposit, and individual retirement accounts. The company also offers one-to-four family residential, commercial real estate, home equity and lines of credit, residential construction and other construction and land, and commercial loans; and consumer loans comprising loans secured by personal property, such as automobiles, marketable securities, and boats and motorcycles, as well as unsecured consumer debt. In addition, it invests in investment securities, as well as provides specialty floor plan lending to small auto dealerships under the CarBucks trade name. The company operates through eight branches across South Carolina. GrandSouth Bancorporation was founded in 1998 and is based in Greenville, South Carolina.

About Home BancShares

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.