Head to Head Review: Commerzbank (OTCMKTS:CRZBY) & Home BancShares (NYSE:HOMB)

Home BancShares (NYSE:HOMB – Get Free Report) and Commerzbank (OTCMKTS:CRZBY – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation & Earnings

This table compares Home BancShares and Commerzbank”s revenue, earnings per share (EPS) and valuation.

Commerzbank has higher revenue and earnings than Home BancShares. Home BancShares is trading at a lower price-to-earnings ratio than Commerzbank, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.3% of Home BancShares shares are held by institutional investors. 6.4% of Home BancShares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Home BancShares has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Commerzbank has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Dividends

Home BancShares pays an annual dividend of $0.92 per share and has a dividend yield of 3.2%. Commerzbank pays an annual dividend of $0.90 per share and has a dividend yield of 1.9%. Home BancShares pays out 38.0% of its earnings in the form of a dividend. Commerzbank pays out 29.6% 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 has raised its dividend for 15 consecutive years. Home BancShares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Home BancShares and Commerzbank’s net margins, return on equity and return on assets.

Analyst Ratings

This is a summary of recent ratings and target prices for Home BancShares and Commerzbank, as reported by MarketBeat.

Home BancShares currently has a consensus price target of $33.00, indicating a potential upside of 13.07%. Given Home BancShares’ higher possible upside, analysts plainly believe Home BancShares is more favorable than Commerzbank.

Summary

Home BancShares beats Commerzbank on 10 of the 17 factors compared between the two stocks.

About Home BancShares

(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 Commerzbank

(Get Free Report)

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.