HomeStreet (NASDAQ: HMST) is one of 342 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare HomeStreet to related companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

81.7% of HomeStreet shares are owned by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are owned by institutional investors. 7.6% of HomeStreet shares are owned by company insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares HomeStreet and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
HomeStreet $568.69 million $58.15 million 21.46
HomeStreet Competitors $5.45 billion $813.35 million 38.16

HomeStreet’s peers have higher revenue and earnings than HomeStreet. HomeStreet is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

HomeStreet has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, HomeStreet’s peers have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for HomeStreet and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HomeStreet 0 3 1 0 2.25
HomeStreet Competitors 2101 8305 8392 324 2.36

HomeStreet presently has a consensus price target of $29.08, suggesting a potential upside of 1.16%. As a group, “Banks” companies have a potential downside of 7.45%. Given HomeStreet’s higher probable upside, analysts plainly believe HomeStreet is more favorable than its peers.

Profitability

This table compares HomeStreet and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HomeStreet 6.68% 6.08% 0.61%
HomeStreet Competitors 18.88% 8.83% 0.94%

Summary

HomeStreet peers beat HomeStreet on 11 of the 13 factors compared.

About HomeStreet

HomeStreet, Inc. is a financial services company serving customers primarily in the western United States, including Hawaii. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. The Company’s operating segments include Commercial and Consumer Banking, and Mortgage Banking. It provides financial products and services to its commercial and consumer customers through retail deposit branches and commercial lending centers, automated teller machines (ATMs), and online, mobile and telephone banking. The Company originates single family residential mortgage loans for sale in the secondary markets. Its mortgage loans are sold to or securitized by Fannie Mae, The Federal Home Loan Mortgage Corporation (Freddie Mac) or The Government National Mortgage Association (Ginnie Mae), while it retains the right to service these loans. It also provides insurance products and services for consumers and businesses.

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