Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) & Western Alliance Bancorporation (NYSE:WAL) Head to Head Contrast

Western Alliance Bancorporation (NYSE:WAL) and Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

79.2% of Western Alliance Bancorporation shares are owned by institutional investors. Comparatively, 21.1% of Home Federal Bancorp, Inc. of Louisiana shares are owned by institutional investors. 2.8% of Western Alliance Bancorporation shares are owned by company insiders. Comparatively, 19.4% of Home Federal Bancorp, Inc. of Louisiana shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Western Alliance Bancorporation and Home Federal Bancorp, Inc. of Louisiana”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$3.87 billion	2.10	$969.00 million	$8.88	8.37
Home Federal Bancorp, Inc. of Louisiana	$35.17 million	2.10	$6.17 million	$2.00	12.08

Western Alliance Bancorporation has higher revenue and earnings than Home Federal Bancorp, Inc. of Louisiana. Western Alliance Bancorporation is trading at a lower price-to-earnings ratio than Home Federal Bancorp, Inc. of Louisiana, indicating that it is currently the more affordable of the two stocks.

Dividends

Western Alliance Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.3%. Home Federal Bancorp, Inc. of Louisiana pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Western Alliance Bancorporation pays out 18.9% of its earnings in the form of a dividend. Home Federal Bancorp, Inc. of Louisiana pays out 30.0% 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. Western Alliance Bancorporation has raised its dividend for 5 consecutive years and Home Federal Bancorp, Inc. of Louisiana has raised its dividend for 11 consecutive years. Home Federal Bancorp, Inc. of Louisiana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Western Alliance Bancorporation and Home Federal Bancorp, Inc. of Louisiana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	0	5	11	0	2.69
Home Federal Bancorp, Inc. of Louisiana	0	1	0	0	2.00

Western Alliance Bancorporation presently has a consensus price target of $93.12, suggesting a potential upside of 25.28%. Given Western Alliance Bancorporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Western Alliance Bancorporation is more favorable than Home Federal Bancorp, Inc. of Louisiana.

Profitability

This table compares Western Alliance Bancorporation and Home Federal Bancorp, Inc. of Louisiana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	17.20%	13.40%	1.07%
Home Federal Bancorp, Inc. of Louisiana	17.56%	10.69%	0.98%

Volatility and Risk

Western Alliance Bancorporation has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Home Federal Bancorp, Inc. of Louisiana has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Summary

Western Alliance Bancorporation beats Home Federal Bancorp, Inc. of Louisiana on 12 of the 17 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About Home Federal Bancorp, Inc. of Louisiana

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank that provides various financial services to individuals, corporate entities, and other organizations. The company accepts various deposits, such as passbook savings, certificates of deposit, and demand deposit accounts. Its loan products include one-to-four family residential real estate loans; commercial real estate secured loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; lines of credit; and consumer non-real estate loans, including loans secured by deposit accounts, automobile loans, overdrafts, and other unsecured loans. The company operates through branches in Shreveport, Bossier City, Minden, and Benton, Louisiana. The company was founded in 1924 and is based in Shreveport, Louisiana.