Analyzing Home Bancorp (HBCP) & Beneficial Bancorp (BNCL)

Home Bancorp (NASDAQ: HBCP) and Beneficial Bancorp (NASDAQ:BNCL) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

37.2% of Home Bancorp shares are owned by institutional investors. Comparatively, 71.8% of Beneficial Bancorp shares are owned by institutional investors. 13.2% of Home Bancorp shares are owned by insiders. Comparatively, 5.5% of Beneficial Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Home Bancorp and Beneficial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Bancorp 0 3 0 0 2.00
Beneficial Bancorp 0 1 0 0 2.00

Home Bancorp presently has a consensus price target of $48.00, indicating a potential upside of 6.38%. Beneficial Bancorp has a consensus price target of $17.00, indicating a potential upside of 3.34%. Given Home Bancorp’s higher probable upside, equities analysts plainly believe Home Bancorp is more favorable than Beneficial Bancorp.

Dividends

Home Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Beneficial Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Home Bancorp pays out 24.5% of its earnings in the form of a dividend.

Profitability

This table compares Home Bancorp and Beneficial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home Bancorp 21.91% 10.11% 1.25%
Beneficial Bancorp 11.07% 3.74% 0.66%

Volatility & Risk

Home Bancorp has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Beneficial Bancorp has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares Home Bancorp and Beneficial Bancorp’s 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 5.04 $16.82 million $2.77 16.29
Beneficial Bancorp $226.63 million 5.48 $23.93 million N/A N/A

Beneficial Bancorp has higher revenue and earnings than Home Bancorp.

Summary

Beneficial Bancorp beats Home Bancorp on 7 of the 13 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.

Beneficial Bancorp Company Profile

Beneficial Bancorp, Inc., together with its subsidiaries, provides consumer and commercial banking services to individuals, businesses, and nonprofit organizations in Philadelphia and Southern New Jersey area. The company accepts various deposit products, including non-interest bearing demand deposits, such as individual checking accounts; interest-bearing demand accounts comprising NOW, municipal, and money market accounts; savings accounts; certificates of deposit; and commercial checking accounts, as well as checking accounts primarily for small businesses. It also provides cash management services that include remote deposit, lockbox service, and sweep accounts; and certificate of deposit account registry service and brokered certificates of deposit. In addition, the company offers a portfolio of commercial loans and leases, which comprises business loans, small business leases, commercial real estate loans, and commercial construction loans; residential loans, including one- to four-family residential real estate loans; and consumer personal loans, such as home equity loans and lines of credit, automobile loans, personal loans, recreational vehicles, and educational loans. Further, it provides insurance brokerage and wealth management services; and property, casualty, life, and health and benefits insurance services. Additionally, the company holds title to various securities and other investments; holds and manages other real estate owned properties. The company was founded in 1853 and is headquartered in Philadelphia, Pennsylvania.

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