Premier Financial (NASDAQ:PFC) and Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Profitability
This table compares Premier Financial and Home Bancshares, Inc. (Conway, AR)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Premier Financial | 15.58% | 9.61% | 1.30% |
Home Bancshares, Inc. (Conway, AR) | 26.02% | 12.05% | 1.88% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Premier Financial and Home Bancshares, Inc. (Conway, AR), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Premier Financial | 0 | 0 | 3 | 0 | 3.00 |
Home Bancshares, Inc. (Conway, AR) | 0 | 2 | 2 | 0 | 2.50 |
Premier Financial presently has a consensus price target of $27.1667, indicating a potential downside of 11.39%. Home Bancshares, Inc. (Conway, AR) has a consensus price target of $18.50, indicating a potential downside of 24.30%. Given Premier Financial's stronger consensus rating and higher possible upside, analysts plainly believe Premier Financial is more favorable than Home Bancshares, Inc. (Conway, AR).
Risk & Volatility
Premier Financial has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Home Bancshares, Inc. (Conway, AR) has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Insider & Institutional Ownership
64.1% of Premier Financial shares are owned by institutional investors. Comparatively, 67.2% of Home Bancshares, Inc. (Conway, AR) shares are owned by institutional investors. 1.6% of Premier Financial shares are owned by company insiders. Comparatively, 8.7% of Home Bancshares, Inc. (Conway, AR) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Premier Financial and Home Bancshares, Inc. (Conway, AR)'s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Premier Financial | $186.04 million | 6.15 | $49.37 million | $2.53 | 12.12 |
Home Bancshares, Inc. (Conway, AR) | $817.50 million | 4.94 | $289.54 million | $1.73 | 14.13 |
Home Bancshares, Inc. (Conway, AR) has higher revenue and earnings than Premier Financial. Premier Financial is trading at a lower price-to-earnings ratio than Home Bancshares, Inc. (Conway, AR), indicating that it is currently the more affordable of the two stocks.
Dividends
Premier Financial pays an annual dividend of $0.96 per share and has a dividend yield of 3.1%. Home Bancshares, Inc. (Conway, AR) pays an annual dividend of $0.56 per share and has a dividend yield of 2.3%. Premier Financial pays out 37.9% of its earnings in the form of a dividend. Home Bancshares, Inc. (Conway, AR) pays out 32.4% 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. Premier Financial has increased its dividend for 1 consecutive years and Home Bancshares, Inc. (Conway, AR) has increased its dividend for 10 consecutive years.
Summary
Home Bancshares, Inc. (Conway, AR) beats Premier Financial on 10 of the 17 factors compared between the two stocks.