Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) versus Amalgamated Financial (NASDAQ:AMAL) Financial Analysis

Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB – Get Free Report) and Amalgamated Financial (NASDAQ:AMAL – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Valuation and Earnings

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

Home Bancshares, Inc. (Conway, AR) has higher revenue and earnings than Amalgamated Financial. Amalgamated Financial 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.

Profitability

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

Insider and Institutional Ownership

67.3% of Home Bancshares, Inc. (Conway, AR) shares are held by institutional investors. Comparatively, 75.9% of Amalgamated Financial shares are held by institutional investors. 7.7% of Home Bancshares, Inc. (Conway, AR) shares are held by company insiders. Comparatively, 0.9% of Amalgamated Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Home Bancshares, Inc. (Conway, AR) has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Dividends

Home Bancshares, Inc. (Conway, AR) pays an annual dividend of $0.72 per share and has a dividend yield of 2.5%. Amalgamated Financial pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. Home Bancshares, Inc. (Conway, AR) pays out 37.1% of its earnings in the form of a dividend. Amalgamated Financial pays out 15.7% 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 13 consecutive years. Home Bancshares, Inc. (Conway, AR) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings for Home Bancshares, Inc. (Conway, AR) and Amalgamated Financial, as provided by MarketBeat.com.

Home Bancshares, Inc. (Conway, AR) presently has a consensus price target of $27.25, indicating a potential downside of 4.59%. Amalgamated Financial has a consensus price target of $30.50, indicating a potential downside of 5.31%. Given Home Bancshares, Inc. (Conway, AR)’s higher possible upside, equities analysts clearly believe Home Bancshares, Inc. (Conway, AR) is more favorable than Amalgamated Financial.

Summary

Home Bancshares, Inc. (Conway, AR) beats Amalgamated Financial on 11 of the 17 factors compared between the two stocks.

About Home Bancshares, Inc. (Conway, AR)

(Get Free Report)

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.

About Amalgamated Financial

(Get Free Report)

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

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