Critical Survey: Home Bancshares (HOMB) & Green Bancorp (GNBC)

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

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.

Earnings & Valuation

This table compares Home Bancshares and Green Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Home Bancshares $619.89 million 6.74 $135.08 million $0.91 26.43
Green Bancorp $190.76 million 4.50 $34.14 million $0.76 30.39

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

Analyst Ratings

This is a summary of recent recommendations for Home Bancshares and Green Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Bancshares 0 4 2 0 2.33
Green Bancorp 0 2 1 0 2.33

Home Bancshares presently has a consensus target price of $27.75, suggesting a potential upside of 15.38%. Green Bancorp has a consensus target price of $25.00, suggesting a potential upside of 8.23%. Given Home Bancshares’ higher probable upside, equities analysts plainly believe Home Bancshares is more favorable than Green Bancorp.

Institutional & Insider Ownership

60.6% of Home Bancshares shares are owned by institutional investors. Comparatively, 63.2% of Green Bancorp shares are owned by institutional investors. 11.3% of Home Bancshares shares are owned by insiders. Comparatively, 16.2% of Green Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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% 9.92% 1.08%

Volatility & Risk

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

Summary

Home Bancshares beats Green Bancorp on 10 of the 15 factors compared between the two stocks.

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 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.

About Green Bancorp

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.

Leave a Reply