Financial Analysis: Veritex (NASDAQ:VBTX) & Omni Financial Services (OTCMKTS:OFSI)

Omni Financial Services (OTCMKTS:OFSI) and Veritex (NASDAQ:VBTX) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

88.3% of Veritex shares are owned by institutional investors. 4.3% of Veritex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Omni Financial Services and Veritex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omni Financial Services	N/A	N/A	N/A
Veritex	14.83%	7.55%	0.96%

Volatility and Risk

Omni Financial Services has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500. Comparatively, Veritex has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Earnings and Valuation

This table compares Omni Financial Services and Veritex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omni Financial Services	N/A	N/A	N/A	N/A	N/A
Veritex	$797.62 million	2.24	$107.24 million	$2.10	15.53

Veritex has higher revenue and earnings than Omni Financial Services.

Analyst Recommendations

This is a summary of current recommendations for Omni Financial Services and Veritex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omni Financial Services	0	0	0	0	0.00
Veritex	0	4	5	0	2.56

Veritex has a consensus price target of $33.25, suggesting a potential upside of 1.96%. Given Veritex’s stronger consensus rating and higher possible upside, analysts clearly believe Veritex is more favorable than Omni Financial Services.

Summary

Veritex beats Omni Financial Services on 9 of the 10 factors compared between the two stocks.

About Omni Financial Services

OMNI Financial Services, Inc. provides various financial products and services to individuals, professionals, and business owners. The company offers deferred annuities, fixed annuities, and immediate annuities; and group medical, key employee, survivor life, disability, fixed life, long term care, and term life insurance products. It also provides college funding, retirement, and estate planning services. The company was founded in 1976 and is headquartered in Fort Myers, Florida.

About Veritex

Veritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company accepts deposit products include demand, savings, money market, and time accounts. Its loan products include commercial real estate and general commercial, mortgage warehouse loans, residential real estate, construction and land, farmland, paycheck protection program, 1-4 family residential, agricultural, multi-family residential, and consumer loans, as well as purchased receivables financing. The company also provides interest rate swap services; and a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as mobile banking, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier’s checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products and services consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. The company operates full-service branches located in the Dallas-Fort Worth metroplex, and the Houston metropolitan area. Veritex Holdings, Inc. was incorporated in 2009 and is headquartered in Dallas, Texas.