Home Bancshares (NASDAQ: HOMB) and Green Bancorp (NASDAQ:GNBC) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Earnings and 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||6.80||$135.08 million||$1.12||21.66|
|Green Bancorp||$190.76 million||4.44||$34.14 million||$0.92||24.78|
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.
This is a breakdown of current ratings and price targets for Home Bancshares and Green Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Home Bancshares presently has a consensus price target of $28.08, indicating a potential upside of 15.76%. Green Bancorp has a consensus price target of $25.00, indicating a potential upside of 9.65%. Given Home Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Home Bancshares is more favorable than Green Bancorp.
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 39.3% of its earnings in the form of a dividend.
Institutional and Insider Ownership
64.9% of Home Bancshares shares are held by institutional investors. Comparatively, 63.3% of Green Bancorp shares are held by institutional investors. 9.2% of Home Bancshares shares are held by insiders. Comparatively, 16.2% of Green Bancorp shares are held 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.
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|
Risk and Volatility
Home Bancshares has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Green Bancorp has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.
Home Bancshares beats Green Bancorp on 12 of the 16 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.
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