University Bancorp (OTCMKTS:UNIB) & Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) Critical Review

University Bancorp (OTCMKTS:UNIB) and Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
University Bancorp	N/A	N/A	N/A
Home Bancshares, Inc. (Conway, AR)	26.69%	10.33%	1.75%

Valuation & Earnings

This table compares University Bancorp 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
University Bancorp	$105.57 million	0.81	$5.43 million	N/A	N/A
Home Bancshares, Inc. (Conway, AR)	$1.34 billion	4.53	$392.93 million	$1.94	15.79

Home Bancshares, Inc. (Conway, AR) has higher revenue and earnings than University Bancorp.

Analyst Recommendations

This is a summary of current ratings and price targets for University Bancorp and Home Bancshares, Inc. (Conway, AR), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
University Bancorp	0	0	0	0	0.00
Home Bancshares, Inc. (Conway, AR)	0	2	2	0	2.50

Home Bancshares, Inc. (Conway, AR) has a consensus target price of $28.25, indicating a potential downside of 7.77%. Given Home Bancshares, Inc. (Conway, AR)’s stronger consensus rating and higher probable upside, analysts plainly believe Home Bancshares, Inc. (Conway, AR) is more favorable than University Bancorp.

Insider and Institutional Ownership

67.3% of Home Bancshares, Inc. (Conway, AR) shares are owned by institutional investors. 63.7% of University Bancorp shares are owned by company insiders. Comparatively, 7.7% of Home Bancshares, Inc. (Conway, AR) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

University Bancorp has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Home Bancshares, Inc. (Conway, AR) has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Home Bancshares, Inc. (Conway, AR) beats University Bancorp on 11 of the 12 factors compared between the two stocks.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.

About Home Bancshares, Inc. (Conway, AR)

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 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. It operates through branches in Arkansas, Florida, Alabama, Texas, and New York City. Home Bancshares, Inc. (Conway, AR) was founded in 1998 and is headquartered in Conway, Arkansas.