Home BancShares, Inc. (HOMB) vs United Bankshares, Inc. (UBSI)

Home BancShares, Inc. and United Bankshares, Inc. are both Banks Regional companies. Home BancShares, Inc. and United Bankshares, Inc. are of similar size ($6.3B and $5.8B). Home BancShares, Inc. trades at the lower P/E: 12.1× against 12.7×. United Bankshares, Inc. grew revenue faster over the last twelve months: 7.97% against 1.74%. Home BancShares, Inc. has the higher net margin (32.1% vs 28.0%) and the lower return on invested capital (9.38% vs 10.2%). Both pay a dividend; United Bankshares, Inc. yields more (4.32% vs 3.22%). Across the 20 metrics below, Home BancShares, Inc. leads on 10 and United Bankshares, Inc. on 10.

Valuation

Metric HOMB UBSI Banks Regional median
P/E 12.06 12.73 12.15
P/S 3.93 3.51 2.37
P/B 1.29 1.17 1.21
Price to free cash flow 13.36 11.81 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.71 2.67 2.27
Earnings yield 8.29% 7.85% 8.11%
Free cash flow yield 7.48% 8.47% 8.98%

Profitability

Metric HOMB UBSI Banks Regional median
Gross margin 75.11% 69.61% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 32.10% 27.97% 18.66%
Free cash flow margin 29.44% 29.05% 21.18%
Return on equity 11.11% 9.47% 10.64%
Return on assets 2.01% 1.55% 1.13%
Return on invested capital 9.38% 10.17% 8.33%

Growth

Metric HOMB UBSI Banks Regional median
Revenue growth (TTM) 1.74% 7.97% 6.61%
EPS growth (last fiscal year) 19.90% 18.91% —
Revenue growth, 5-year CAGR 13.40% 9.57% 12.30%
Net income growth, 5-year CAGR 17.26% 9.96% 9.71%

Health

Metric HOMB UBSI Banks Regional median
Debt to equity 0.16 0.10 0.22
Current ratio 0.92 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HOMB UBSI Banks Regional median
Dividend yield 3.22% 4.32% 3.75%
Payout ratio 0.32 0.49 0.27

Size

Metric HOMB UBSI Banks Regional median
Market cap 5.79b 6.34b 921.07m

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