Home Bancshares (NASDAQ:HOMB) and First US Bancshares (NASDAQ:FUSB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
This table compares Home Bancshares and First US Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First US Bancshares||-2.15%||2.12%||0.24%|
Risk and Volatility
Home Bancshares has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, First US Bancshares has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Home Bancshares and First US Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First US Bancshares||0||0||0||0||N/A|
Home Bancshares currently has a consensus price target of $26.80, suggesting a potential upside of 59.33%. Given Home Bancshares’ higher probable upside, equities analysts plainly believe Home Bancshares is more favorable than First US Bancshares.
Institutional and Insider Ownership
65.6% of Home Bancshares shares are owned by institutional investors. Comparatively, 15.5% of First US Bancshares shares are owned by institutional investors. 9.2% of Home Bancshares shares are owned by company insiders. Comparatively, 9.7% of First US Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Home Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. First US Bancshares pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Home Bancshares pays out 35.6% of its earnings in the form of a dividend. Home Bancshares has increased its dividend for 7 consecutive years. Home Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Home Bancshares and First US Bancshares’ 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||4.69||$135.08 million||$1.35||12.46|
|First US Bancshares||$35.77 million||1.42||-$410,000.00||N/A||N/A|
Home Bancshares has higher revenue and earnings than First US Bancshares.
Home Bancshares beats First US Bancshares on 12 of the 15 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, NOW, 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 also provides Internet banking, mobile banking, 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. As of December 31, 2017, it operated through 170 branch locations, including 76 branches in Arkansas, 88 branches in Florida, 5 branches in Alabama, and 1 branch in New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.
About First US Bancshares
First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services in Alabama. The company accepts deposit products, such as non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include loans for the development of residential housing projects, development of commercial and industrial use property, and purchase and improvement of raw land; mortgage loans on one-to-four family residential properties and secured by apartment buildings; home equity loans and lines of credit; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, or other commercial property; loans for agricultural production; commercial and industrial loans; and automobile, household and personal, and other direct consumer installment loans. The company also provides letters of credit; debit and credit cards; ATMs; and safe deposit box, remote deposit capture, wire transfer, and real estate rental services, as well as reinsures or underwrites credit life, and credit accident and health insurance policies. First US Bancshares, Inc. serves small- and medium-sized businesses, property managers, business executives, professionals, and other individuals. It operates and serves its customers through 16 full-service banking offices located in Birmingham, Bucksville, Butler, Calera, Centreville, Columbiana, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa, and Woodstock, Alabama; and a loan production office located in Mountain Brook, a suburb of Birmingham, Alabama. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is based in Birmingham, Alabama.
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