Truxton (OTCMKTS:TRUX) & Home BancShares (NYSE:HOMB) Head-To-Head Analysis

Truxton (OTCMKTS:TRUX) and Home BancShares (NYSE:HOMB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Truxton	23.77%	N/A	N/A
Home BancShares	29.58%	10.60%	1.87%

Analyst Ratings

This is a breakdown of current ratings and target prices for Truxton and Home BancShares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truxton	0	0	0	0	0.00
Home BancShares	0	2	3	0	2.60

Home BancShares has a consensus price target of $33.20, indicating a potential upside of 15.66%. Given Home BancShares’ stronger consensus rating and higher possible upside, analysts plainly believe Home BancShares is more favorable than Truxton.

Earnings and Valuation

This table compares Truxton and Home BancShares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truxton	$78.37 million	2.98	$18.41 million	$6.90	11.74
Home BancShares	$1.03 billion	5.49	$402.24 million	$2.19	13.11

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

Risk and Volatility

Truxton has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Home BancShares has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Dividends

Truxton pays an annual dividend of $2.00 per share and has a dividend yield of 2.5%. Home BancShares pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Truxton pays out 29.0% of its earnings in the form of a dividend. Home BancShares pays out 36.5% 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 increased 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.

Institutional and Insider Ownership

0.4% of Truxton shares are held by institutional investors. Comparatively, 67.3% of Home BancShares shares are held by institutional investors. 6.3% of Home BancShares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Home BancShares beats Truxton on 15 of the 17 factors compared between the two stocks.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

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.