Associated Banc-Corp (ASB) vs Home BancShares, Inc. (HOMB)

Associated Banc-Corp and Home BancShares, Inc. are both Banks Regional companies. Associated Banc-Corp and Home BancShares, Inc. are of similar size ($5.8B and $5.5B). Associated Banc-Corp trades at the lower P/E: 10.2× against 12.1×. Associated Banc-Corp grew revenue faster over the last twelve months: 20.8% against 1.74%. Home BancShares, Inc. has the higher net margin (32.1% vs 19.1%) and the higher return on invested capital (9.38% vs 4.38%). Both pay a dividend; Associated Banc-Corp yields more (4.46% vs 3.22%). Across the 20 metrics below, Associated Banc-Corp leads on 11 and Home BancShares, Inc. on 9.

Valuation

Metric ASB HOMB Banks Regional median
P/E 10.20 12.06 12.15
P/S 2.15 3.93 2.37
P/B 1.01 1.29 1.21
Price to free cash flow 8.13 13.36 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.45 3.71 2.27
Earnings yield 9.81% 8.29% 8.11%
Free cash flow yield 12.30% 7.48% 8.98%

Profitability

Metric ASB HOMB Banks Regional median
Gross margin 62.64% 75.11% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 19.12% 32.10% 18.66%
Free cash flow margin 26.45% 29.44% 21.18%
Return on equity 9.80% 11.11% 10.64%
Return on assets 1.03% 2.01% 1.13%
Return on invested capital 4.38% 9.38% 8.33%

Growth

Metric ASB HOMB Banks Regional median
Revenue growth (TTM) 20.78% 1.74% 6.61%
EPS growth (last fiscal year) 284.72% 19.90% —
Revenue growth, 5-year CAGR 11.50% 13.40% 12.30%
Net income growth, 5-year CAGR 9.83% 17.26% 9.71%

Health

Metric ASB HOMB Banks Regional median
Debt to equity 0.92 0.16 0.22
Current ratio 0.93 0.92 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric ASB HOMB Banks Regional median
Dividend yield 4.46% 3.22% 3.75%
Payout ratio 0.33 0.32 0.27

Size

Metric ASB HOMB Banks Regional median
Market cap 5.49b 5.79b 921.07m

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