Critical Survey: First NBC Bank (OTCMKTS:FNBCQ) vs. Home BancShares (NYSE:HOMB)

First NBC Bank (OTCMKTS:FNBCQ) and Home BancShares (NYSE:HOMB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Valuation and Earnings

This table compares First NBC Bank and Home BancShares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First NBC Bank	N/A	N/A	N/A	N/A	N/A
Home BancShares	$1.48 billion	3.52	$475.44 million	$2.43	10.88

Home BancShares has higher revenue and earnings than First NBC Bank.

Institutional & Insider Ownership

67.3% of Home BancShares shares are owned by institutional investors. 8.4% of First NBC Bank shares are owned by insiders. Comparatively, 6.4% of Home BancShares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for First NBC Bank and Home BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First NBC Bank	0	0	0	0	0.00
Home BancShares	0	3	3	0	2.50

Home BancShares has a consensus target price of $31.40, indicating a potential upside of 18.80%. Given Home BancShares’ stronger consensus rating and higher possible upside, analysts plainly believe Home BancShares is more favorable than First NBC Bank.

Profitability

This table compares First NBC Bank and Home BancShares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First NBC Bank	N/A	N/A	N/A
Home BancShares	32.48%	11.11%	2.05%

Summary

Home BancShares beats First NBC Bank on 8 of the 9 factors compared between the two stocks.

About First NBC Bank

First NBC Bank Holding Company operates as the bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals. The company's deposit products include savings deposits, money market accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises construction, commercial and consumer real estate, commercial and industrial, and consumer loans. The company also offers trust services, credit cards, and wire transfers. As of August 15, 2016, it operated 39 full service banking offices in New Orleans metropolitan area, Mississippi Gulf Coast, and the Florida panhandle. First NBC Bank Holding Company was founded in 2006 and is headquartered in New Orleans, Louisiana. On May 11, 2017, First NBC Bank Holding Company filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Eastern District of Louisiana. First NBC Bank Holding Company operates as a subsidiary of First NMTC 2, LLC.

About Home BancShares

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.