Home Bancshares (NASDAQ: HOMB) and Select Bancorp (NASDAQ:SLCT) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Volatility & Risk
Home Bancshares has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Select Bancorp has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.
64.9% of Home Bancshares shares are held by institutional investors. Comparatively, 19.4% of Select Bancorp shares are held by institutional investors. 9.2% of Home Bancshares shares are held by company insiders. Comparatively, 14.2% of Select Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Home Bancshares and Select Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Home Bancshares and Select Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Home Bancshares||$619.89 million||6.89||$135.08 million||$1.12||21.96|
|Select Bancorp||$42.69 million||4.36||$3.18 million||$0.48||27.69|
Home Bancshares has higher revenue and earnings than Select Bancorp. Home Bancshares is trading at a lower price-to-earnings ratio than Select Bancorp, indicating that it is currently the more affordable of the two stocks.
Home Bancshares pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Select Bancorp does not pay a dividend. Home Bancshares pays out 39.3% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Home Bancshares and Select Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Home Bancshares presently has a consensus price target of $28.08, suggesting a potential upside of 14.21%. Select Bancorp has a consensus price target of $13.00, suggesting a potential downside of 2.18%. Given Home Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Home Bancshares is more favorable than Select Bancorp.
Home Bancshares beats Select Bancorp on 13 of the 16 factors compared between the two stocks.
Home Bancshares Company Profile
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.
Select Bancorp Company Profile
Select Bancorp, Inc. is the bank holding company for Select Bank & Trust Company (the Bank). The Bank is a commercial bank. The Bank provides commercial and retail financial services to customers located in its market areas. The Bank offers a range of banking services, including checking and savings accounts, commercial, consumer, mortgage and personal loans, and other associated financial services. The Bank’s lending activities are oriented to the consumer/retail customer, as well as to the small-to-medium sized businesses located in central and eastern North Carolina. The Bank offers commercial, consumer and mortgage lending products. It originates construction loans for the purpose of acquisition, development and construction of both residential and commercial properties (ADC loans). The Bank’s deposits include savings, negotiable order of withdrawal (NOW) account and money market deposits, time deposits and non-interest-bearing deposits.
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.