First Bank (NASDAQ:FRBA) versus Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) Financial Comparison

First Bank (NASDAQ:FRBAGet Rating) and Home Bancshares, Inc. (Conway, AR) (NYSE:HOMBGet Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Valuation & Earnings

This table compares First Bank and Home Bancshares, Inc. (Conway, AR)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Bank $98.87 million 2.75 $35.43 million $1.78 7.85
Home Bancshares, Inc. (Conway, AR) $762.74 million 6.26 $319.02 million $1.46 16.04

Home Bancshares, Inc. (Conway, AR) has higher revenue and earnings than First Bank. First Bank 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

First Bank pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Home Bancshares, Inc. (Conway, AR) pays an annual dividend of $0.66 per share and has a dividend yield of 2.8%. First Bank pays out 13.5% of its earnings in the form of a dividend. Home Bancshares, Inc. (Conway, AR) pays out 45.2% 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, Inc. (Conway, AR) has increased its dividend for 12 consecutive years. Home Bancshares, Inc. (Conway, AR) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

45.3% of First Bank shares are held by institutional investors. Comparatively, 59.8% of Home Bancshares, Inc. (Conway, AR) shares are held by institutional investors. 13.1% of First Bank shares are held by company insiders. Comparatively, 9.1% of Home Bancshares, Inc. (Conway, AR) shares are held by company 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.

Volatility & Risk

First Bank has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Home Bancshares, Inc. (Conway, AR) has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for First Bank and Home Bancshares, Inc. (Conway, AR), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Bank 0 0 0 0 N/A
Home Bancshares, Inc. (Conway, AR) 0 1 1 0 2.50

First Bank currently has a consensus price target of $15.75, indicating a potential upside of 12.74%. Home Bancshares, Inc. (Conway, AR) has a consensus price target of $28.00, indicating a potential upside of 19.56%. Given Home Bancshares, Inc. (Conway, AR)’s higher possible upside, analysts clearly believe Home Bancshares, Inc. (Conway, AR) is more favorable than First Bank.

Profitability

This table compares First Bank and Home Bancshares, Inc. (Conway, AR)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Bank 33.63% 13.08% 1.39%
Home Bancshares, Inc. (Conway, AR) 29.01% 11.03% 1.63%

Summary

Home Bancshares, Inc. (Conway, AR) beats First Bank on 11 of the 16 factors compared between the two stocks.

About First Bank

(Get Rating)

First Bank provides various banking products and services to individuals, businesses, and governmental entities. The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans that include auto, personal, and traditional installment loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services. As of December 31, 2021, it operated 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Hamilton, Lawrence, Mercerville, Pennington, Randolph, Somerset, and Williamstown counties in New Jersey, as well as Doylestown, Trevose, Warminster, and West Chester counties in Pennsylvania. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

About Home Bancshares, Inc. (Conway, AR)

(Get Rating)

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 also 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. As of December 31, 2021, it operated through 160 branch locations that included 76 branches in Arkansas, 78 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.

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