Critical Survey: Home Bancorp (NASDAQ:HBCP) and Thomasville Bancshares (OTCMKTS:THVB)

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

Risk & Volatility

Thomasville Bancshares has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Home Bancorp has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
Home Bancorp	22.01%	11.19%	1.32%

Dividends

Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 2.9%. Home Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.1%. Thomasville Bancshares pays out 42.3% of its earnings in the form of a dividend. Home Bancorp pays out 21.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Home Bancorp has raised its dividend for 10 consecutive years.

Insider and Institutional Ownership

49.4% of Home Bancorp shares are owned by institutional investors. 7.9% of Home Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Thomasville Bancshares and Home Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$137.59 million	4.55	$39.27 million	$6.85	14.42
Home Bancorp	$209.23 million	2.23	$36.43 million	$5.87	10.17

Thomasville Bancshares has higher earnings, but lower revenue than Home Bancorp. Home Bancorp is trading at a lower price-to-earnings ratio than Thomasville Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Thomasville Bancshares and Home Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
Home Bancorp	0	2	3	0	2.60

Home Bancorp has a consensus price target of $63.00, suggesting a potential upside of 5.55%. Given Home Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Home Bancorp is more favorable than Thomasville Bancshares.

Summary

Home Bancorp beats Thomasville Bancshares on 12 of the 17 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

About Home Bancorp

Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana, Mississippi, and Texas. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products comprising 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 credit cards and online banking services. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.