Home Bancshares (NASDAQ:HOMB) & Auburn National Bancorporation (NASDAQ:AUBN) Critical Analysis

Home Bancshares (NASDAQ:HOMB) and Auburn National Bancorporation (NASDAQ:AUBN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Home Bancshares and Auburn National Bancorporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Bancshares 0 1 3 0 2.75
Auburn National Bancorporation 0 0 0 0 N/A

Home Bancshares currently has a consensus target price of $21.50, suggesting a potential upside of 13.07%. Given Home Bancshares’ higher possible upside, equities research analysts clearly believe Home Bancshares is more favorable than Auburn National Bancorporation.

Insider & Institutional Ownership

67.1% of Home Bancshares shares are held by institutional investors. Comparatively, 9.1% of Auburn National Bancorporation shares are held by institutional investors. 8.7% of Home Bancshares shares are held by insiders. Comparatively, 4.5% of Auburn National Bancorporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Home Bancshares and Auburn National Bancorporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Home Bancshares $788.20 million 4.02 $300.40 million $1.75 10.87
Auburn National Bancorporation $32.57 million 4.81 $8.83 million N/A N/A

Home Bancshares has higher revenue and earnings than Auburn National Bancorporation.

Risk and Volatility

Home Bancshares has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Dividends

Home Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.7%. Auburn National Bancorporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Home Bancshares pays out 29.7% of its earnings in the form of a dividend.

Profitability

This table compares Home Bancshares and Auburn National Bancorporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home Bancshares 35.22% 12.22% 1.93%
Auburn National Bancorporation 27.58% 10.20% 1.14%

Summary

Home Bancshares beats Auburn National Bancorporation on 11 of the 14 factors compared between the two stocks.

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, NOW, demand, 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 also provides Internet banking, mobile banking, 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. As of December 31, 2018, it operated through 159 branch locations, including 77 branches in Arkansas, 76 branches in Florida, 5 branches in Alabama, and 1 branch in New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company's deposit products include checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; residential mortgage lending services; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic services; and safe deposit boxes. It operates through its main office; eight full-service branches in Auburn, Opelika, Notasulga, and Valley, Alabama; and a commercial loan production office in Phenix City, Alabama. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.

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.