Home Bancorp (HBCP) versus New York Community Bank (NYCB) Financial Survey

Home Bancorp (NASDAQ: HBCP) and New York Community Bank (NYSE:NYCB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

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Home Bancorp has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, New York Community Bank has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares Home Bancorp and New York Community Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home Bancorp 21.08% 9.68% 1.17%
New York Community Bank 25.91% 6.81% 0.87%

Dividends

Home Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. New York Community Bank pays an annual dividend of $0.68 per share and has a dividend yield of 5.4%. Home Bancorp pays out 21.7% of its earnings in the form of a dividend. New York Community Bank pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Home Bancorp and New York Community Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Bancorp 0 2 0 0 2.00
New York Community Bank 2 5 2 0 2.00

Home Bancorp presently has a consensus price target of $46.00, suggesting a potential upside of 7.55%. New York Community Bank has a consensus price target of $13.34, suggesting a potential upside of 6.24%. Given Home Bancorp’s higher possible upside, equities analysts clearly believe Home Bancorp is more favorable than New York Community Bank.

Valuation and Earnings

This table compares Home Bancorp and New York Community Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Home Bancorp $84.36 million 4.77 $16.82 million $2.77 15.44
New York Community Bank $1.80 billion 3.42 $466.20 million $0.81 15.51

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

Institutional & Insider Ownership

34.9% of Home Bancorp shares are owned by institutional investors. Comparatively, 60.2% of New York Community Bank shares are owned by institutional investors. 15.5% of Home Bancorp shares are owned by insiders. Comparatively, 3.1% of New York Community Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Home Bancorp beats New York Community Bank on 8 of the 15 factors compared between the two stocks.

Home Bancorp Company Profile

Home Bancorp, Inc. operates as the holding company for Home Bank, National Association that provides various banking products and services in Louisiana. It offers deposits products, including interest-bearing and noninterest-bearing checking, money market, savings, and certificates of deposit accounts. The company also provides various loan products, such as one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers online banking services. As of December 31, 2017, the company operated a network of 40 banking offices in Greater Lafayette, Southwest Louisiana, Baton Rouge, Greater New Orleans and Northshore regions of south Louisiana, and the Natchez and Vicksburg regions of west Mississippi. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.

New York Community Bank Company Profile

New York Community Bancorp, Inc. operates as a holding company for New York Community Bank and New York Commercial Bank that offer banking products and financial services in Metro New York, New Jersey, Ohio, Florida, and Arizona. The company offers various deposit products that include checking and savings accounts, individual retirement accounts, certificates of deposit, NOW and money market accounts, and non-interest-bearing accounts. Its loan portfolio comprises one-to-four family loans; multi-family loans; commercial real estate loans; acquisition, development, and construction loans; specialty finance loans and leases; and other C&I loans, as well as various consumer loans. The company also provides installment loans, revolving lines of credit, and insurance products, as well as cash management, and online and mobile banking services. It serves small and mid-size businesses, professional associations, and government agencies. The company serves its customers through a network of 225 Community Bank branches, 30 Commercial Bank branches, and 271 ATM locations. The company was formerly known as Queens County Bancorp, Inc. and changed its name to New York Community Bancorp, Inc. in November 2000. New York Community Bancorp, Inc. was founded in 1859 and is based in Westbury, New York.

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