Home BancShares (NYSE:HOMB) and First BanCorp. (NYSE:FBP) Financial Contrast

Home BancShares (NYSE:HOMB) and First BanCorp. (NYSE:FBP) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Home BancShares and First BanCorp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home BancShares	32.48%	11.11%	2.05%
First BanCorp.	28.31%	17.51%	1.76%

Analyst Recommendations

This is a summary of current recommendations and price targets for Home BancShares and First BanCorp., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home BancShares	0	5	2	0	2.29
First BanCorp.	0	2	3	2	3.00

Home BancShares presently has a consensus target price of $31.20, indicating a potential upside of 7.97%. First BanCorp. has a consensus target price of $26.57, indicating a potential downside of 0.43%. Given Home BancShares’ higher probable upside, analysts plainly believe Home BancShares is more favorable than First BanCorp..

Volatility and Risk

Home BancShares has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Valuation & Earnings

This table compares Home BancShares and First BanCorp.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home BancShares	$1.48 billion	3.94	$475.44 million	$2.43	11.89
First BanCorp.	$1.26 billion	3.29	$344.87 million	$2.25	11.86

Home BancShares has higher revenue and earnings than First BanCorp.. First BanCorp. is trading at a lower price-to-earnings ratio than Home BancShares, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

67.3% of Home BancShares shares are held by institutional investors. Comparatively, 97.9% of First BanCorp. shares are held by institutional investors. 6.4% of Home BancShares shares are held by company insiders. Comparatively, 1.9% of First BanCorp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Home BancShares pays an annual dividend of $0.84 per share and has a dividend yield of 2.9%. First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Home BancShares pays out 34.6% of its earnings in the form of a dividend. First BanCorp. pays out 35.6% 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 BancShares has raised its dividend for 15 consecutive years and First BanCorp. has raised its dividend for 6 consecutive years.

Summary

Home BancShares beats First BanCorp. on 11 of the 18 factors compared between the two stocks.

About Home BancShares

Home Bancshares, Inc. (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises non-farm/non-residential real estate, construction/land development, residential mortgage, consumer, agricultural, and commercial and industrial loans. It provides internet banking, mobile banking and voice response information, cash management, overdraft protection, direct deposit, and automatic account transfer services, as well as safe deposit boxes and the United States savings bonds. In addition, the company writes policies for commercial and personal lines of business, including insurance for property, casualty, life, health, and employee benefits. It operates through branches in Arkansas, Florida, Alabama, Texas, and New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.