Home Bancorp (NASDAQ:HBCP) and Red River Bancshares (NASDAQ:RRBI) Head to Head Survey

Home Bancorp (NASDAQ:HBCP) and Red River Bancshares (NASDAQ:RRBI) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Home Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Home Bancorp pays out 21.4% of its earnings in the form of a dividend. Red River Bancshares pays out 14.4% 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 Bancorp has increased its dividend for 10 consecutive years and Red River Bancshares has increased its dividend for 3 consecutive years. Home Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

49.4% of Home Bancorp shares are held by institutional investors. Comparatively, 27.5% of Red River Bancshares shares are held by institutional investors. 6.2% of Home Bancorp shares are held by company insiders. Comparatively, 16.6% of Red River Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Home Bancorp and Red River Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancorp	$209.23 million	2.60	$46.06 million	$5.98	11.61
Red River Bancshares	$130.73 million	5.17	$42.76 million	$6.95	14.78

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

Risk and Volatility

Home Bancorp has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Home Bancorp and Red River Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Bancorp	0	3	1	1	2.60
Red River Bancshares	0	3	1	0	2.25

Home Bancorp currently has a consensus price target of $69.50, indicating a potential upside of 0.13%. Red River Bancshares has a consensus price target of $106.00, indicating a potential upside of 3.22%. Given Red River Bancshares’ higher probable upside, analysts plainly believe Red River Bancshares is more favorable than Home Bancorp.

Profitability

This table compares Home Bancorp and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Bancorp	22.23%	10.65%	1.32%
Red River Bancshares	26.25%	12.47%	1.39%

Summary

Red River Bancshares beats Home Bancorp on 9 of the 17 factors compared between the two stocks.

About Home Bancorp

Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana, Mississippi, and Texas. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products comprising one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers credit cards and online banking services. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.