National Bankshares (NASDAQ:NKSH – Get Free Report) and Home Bancorp (NASDAQ:HBCP – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Institutional and Insider Ownership
29.7% of National Bankshares shares are held by institutional investors. Comparatively, 49.4% of Home Bancorp shares are held by institutional investors. 3.2% of National Bankshares 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.
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Dividends
National Bankshares pays an annual dividend of $1.46 per share and has a dividend yield of 4.9%. Home Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 2.1%. National Bankshares pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Home Bancorp pays out 22.3% of its earnings in the form of a dividend. Home Bancorp has increased its dividend for 10 consecutive years.
Volatility & Risk
National Bankshares has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Home Bancorp has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Profitability
This table compares National Bankshares and Home Bancorp’s net margins, return on equity and return on assets.
Valuation & Earnings
This table compares National Bankshares and Home Bancorp”s revenue, earnings per share (EPS) and valuation.
Home Bancorp has higher revenue and earnings than National Bankshares. Home Bancorp is trading at a lower price-to-earnings ratio than National Bankshares, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for National Bankshares and Home Bancorp, as reported by MarketBeat.com.
National Bankshares currently has a consensus price target of $38.00, indicating a potential upside of 28.38%. Home Bancorp has a consensus price target of $59.50, indicating a potential upside of 8.76%. Given National Bankshares’ stronger consensus rating and higher possible upside, equities research analysts plainly believe National Bankshares is more favorable than Home Bancorp.
Summary
Home Bancorp beats National Bankshares on 11 of the 17 factors compared between the two stocks.
About National Bankshares
(Get Free Report)
National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking products and services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest-bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, health savings accounts, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository services, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. The company was founded in 1891 and is headquartered in Blacksburg, Virginia.
About Home Bancorp
(Get Free Report)
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.