Popular (NASDAQ:BPOP – Get Free Report) and Home Bancorp (NASDAQ:HBCP – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Popular and Home Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 10 | 1 | 3.00 |
| Home Bancorp | 0 | 1 | 3 | 1 | 3.00 |
Popular currently has a consensus target price of $155.73, indicating a potential upside of 9.18%. Home Bancorp has a consensus target price of $63.00, indicating a potential upside of 2.99%. Given Popular’s higher probable upside, equities analysts plainly believe Popular is more favorable than Home Bancorp.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 18.75% | 13.87% | 1.10% |
| Home Bancorp | 22.01% | 11.19% | 1.32% |
Valuation and Earnings
This table compares Popular and Home Bancorp”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Popular | $4.44 billion | 2.14 | $833.16 million | $12.32 | 11.58 |
| Home Bancorp | $209.23 million | 2.29 | $46.06 million | $5.87 | 10.42 |
Popular has higher revenue and earnings than Home Bancorp. Home Bancorp is trading at a lower price-to-earnings ratio than Popular, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Popular has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Home Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Dividends
Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.1%. Home Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. Popular pays out 24.4% of its earnings in the form of a dividend. Home Bancorp pays out 21.1% 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. Popular has raised its dividend for 6 consecutive years and Home Bancorp has raised its dividend for 10 consecutive years.
Insider and Institutional Ownership
87.3% of Popular shares are held by institutional investors. Comparatively, 49.4% of Home Bancorp shares are held by institutional investors. 2.2% of Popular shares are held by insiders. Comparatively, 7.9% of Home Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Popular beats Home Bancorp on 10 of the 16 factors compared between the two stocks.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
About Home Bancorp
Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana, Mississippi, and Texas. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products comprising one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers credit cards and online banking services. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.
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