U.S. Markets close in 1 hr 42 mins
  • S&P 500

    4,396.49
    -22.66 (-0.51%)
     
  • Dow 30

    34,924.42
    -160.11 (-0.46%)
     
  • Nasdaq

    14,673.60
    -104.66 (-0.71%)
     
  • Russell 2000

    2,226.02
    -14.01 (-0.63%)
     
  • Crude Oil

    74.14
    +0.52 (+0.71%)
     
  • Gold

    1,816.10
    -19.70 (-1.07%)
     
  • Silver

    25.52
    -0.26 (-1.02%)
     
  • EUR/USD

    1.1862
    -0.0034 (-0.2847%)
     
  • 10-Yr Bond

    1.2320
    -0.0370 (-2.92%)
     
  • Vix

    18.02
    +0.32 (+1.81%)
     
  • GBP/USD

    1.3893
    -0.0065 (-0.4626%)
     
  • USD/JPY

    109.7980
    +0.3370 (+0.3079%)
     
  • BTC-USD

    39,041.34
    -584.25 (-1.47%)
     
  • CMC Crypto 200

    927.50
    -22.40 (-2.36%)
     
  • FTSE 100

    7,032.30
    -46.12 (-0.65%)
     
  • Nikkei 225

    27,283.59
    -498.83 (-1.80%)
     

How Has Home BancShares Performed Compared to Its Peers?

US Equity Market Update for October 15, 2015

(Continued from Prior Part)

Home BancShares and its peers

An analysis of Home BancShares and its peers follows:

  • The EPS (earnings per share) of Home BancShares (HOMB) and Bank of the Ozarks (OZRK) are $0.52 and $0.52, respectively, in 3Q15.

  • The forward PE (price-to-earnings) ratios of Home BancShares, BB&T (BBT), Regions Financial (RF), Bank of the Ozarks, and Hancock Holding (HBHC) are 17.73x, 11.47x, 10.47x, 18.93x, and 11.85x, respectively.

The PBV (price-to-book value) ratios of Home BancShares, BB&T, Regions Financial, Bank of the Ozarks, and Hancock are 2.61x, 1.19x, 0.76x, 3.25x, and 0.87x, respectively.

As a result, Home BancShares is way ahead of its peers based on the forward PE ratio and PBV ratio.

ETFs that invest in Home BancShares

The PowerShares S&P SmallCap Financials Portfolio (PSCF) invests 1.5% of its holdings in Home BancShares. PSCF tracks a market-cap-weighted index of financial services companies in the US small-cap market.

The First Trust NASDAQ ABA Community Bank ETF (QABA) invests 1.5% of its holdings in Home BancShares. QABA tracks an index of NASDAQ-listed banks and thrifts, excluding the 50 largest.

The SPDR S&P Regional Banking Fund (KRE) invests 1.4% of its holdings in Home BancShares. KRE tracks an equal-weighted index of US regional banking stocks.

Comparing Home BancShares and its ETFs

An analysis of Home BancShares and its ETFs follows:

  • The YTD (year-to-date) price movements of Home BancShares, PSCF, QABA, and KRE are 29.0%, -1.1%, 4%, and 4.4%, respectively.

  • The PE ratios of Home BancShares, PSCF, QABA, and KRE are 22.66x, 19.21x, 17.0x, and 15.38x, respectively.

  • The PBV ratios of Home BancShares, PSCF, QABA, and KRE are 2.61x, 1.59x, 1.39x, and 1.26x, respectively.

Home BancShares outperformed its ETFs based on the price movement, PE ratio, and PBV ratio.

Continue to Next Part

Browse this series on Market Realist: