HomeStreet (NASDAQ:HMST) and Premier Financial Bancorp (NASDAQ:PFBI) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.
HomeStreet pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Premier Financial Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.4%. HomeStreet pays out 26.0% of its earnings in the form of a dividend. Premier Financial Bancorp has raised its dividend for 1 consecutive years. Premier Financial Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and recommmendations for HomeStreet and Premier Financial Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Premier Financial Bancorp||0||0||0||0||N/A|
HomeStreet currently has a consensus price target of $49.33, suggesting a potential upside of 34.68%. Given HomeStreet’s higher possible upside, equities analysts plainly believe HomeStreet is more favorable than Premier Financial Bancorp.
This table compares HomeStreet and Premier Financial Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Premier Financial Bancorp||28.63%||9.21%||1.17%|
Risk & Volatility
HomeStreet has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Premier Financial Bancorp has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Valuation and Earnings
This table compares HomeStreet and Premier Financial Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HomeStreet||$401.38 million||1.90||$79.99 million||$3.85||9.51|
|Premier Financial Bancorp||$82.92 million||3.11||$22.44 million||N/A||N/A|
HomeStreet has higher revenue and earnings than Premier Financial Bancorp.
Institutional & Insider Ownership
86.6% of HomeStreet shares are held by institutional investors. Comparatively, 32.9% of Premier Financial Bancorp shares are held by institutional investors. 3.8% of HomeStreet shares are held by company insiders. Comparatively, 15.7% of Premier Financial Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
HomeStreet beats Premier Financial Bancorp on 9 of the 15 factors compared between the two stocks.
HomeStreet Company Profile
HomeStreet, Inc. is a holding company, which engages in the provision of commercial and consumer banking and real estate lending services. It operates through the Commercial and Consumer Banking. The Commercial and Consumer Banking segment offers diversified financial products and services to its commercial and consumer customers through bank branches, and through automated teller machines (ATMs), online, mobile and telephone banking. The company was founded on August 17, 1921 and is headquartered in Seattle, WA.
Premier Financial Bancorp Company Profile
Premier Financial Bancorp, Inc. is a multi-bank holding company, which engages in the provision of community banking services through its subsidiaries. Its services include personal and business checking and savings accounts, certificates of deposits, safe deposit boxes, loans, debit and credit cards, mobile and online banking, digital wallet, business lending, and treasury management. The company was founded in 1991 and is headquartered in Huntington, WV.
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