Head-To-Head Analysis: Home Bancorp (NASDAQ:HBCP) versus Univest Corporation of Pennsylvania (NASDAQ:UVSP)

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

Analyst Recommendations

This is a breakdown of recent recommendations for Home Bancorp and Univest Corporation of Pennsylvania, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Bancorp	0	3	2	0	2.40
Univest Corporation of Pennsylvania	0	3	0	1	2.50

Home Bancorp currently has a consensus price target of $65.17, suggesting a potential upside of 5.30%. Univest Corporation of Pennsylvania has a consensus price target of $46.00, suggesting a potential upside of 13.20%. Given Univest Corporation of Pennsylvania’s stronger consensus rating and higher possible upside, analysts clearly believe Univest Corporation of Pennsylvania is more favorable than Home Bancorp.

Valuation and Earnings

This table compares Home Bancorp and Univest Corporation of Pennsylvania”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancorp	$209.23 million	2.30	$46.06 million	$5.67	10.92
Univest Corporation of Pennsylvania	$346.41 million	3.18	$90.76 million	$3.35	12.13

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

Dividends

Home Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Home Bancorp pays out 22.6% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 27.5% 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 Bancorp has increased its dividend for 10 consecutive years and Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

49.4% of Home Bancorp shares are held by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are held by institutional investors. 6.2% of Home Bancorp shares are held by company insiders. Comparatively, 1.8% of Univest Corporation of Pennsylvania shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Home Bancorp has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares Home Bancorp and Univest Corporation of Pennsylvania’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Bancorp	21.05%	9.96%	1.25%
Univest Corporation of Pennsylvania	17.95%	9.94%	1.13%

Summary

Univest Corporation of Pennsylvania beats Home Bancorp on 10 of the 18 factors compared between the two stocks.

About Home Bancorp

Home Bancorp, Inc. is a bank holding company headquartered in Lafayette, Louisiana. Through its subsidiary, Home Bank, N.A., it provides banking services to individuals, businesses and other organizations. Home Bank offers deposit accounts and lending products, including residential mortgage, consumer, commercial real estate and commercial business loans. Its services also include online and mobile banking. The bank traces its roots to 1908 and serves communities in Louisiana and Mississippi, with a presence in areas including Acadiana, Baton Rouge and the New Orleans region.

About Univest Corporation of Pennsylvania

Univest Corporation of Pennsylvania is a financial services holding company headquartered in Souderton, Pennsylvania. Its history dates to 1876, when the community bank that became Univest was established in the area. Through Univest Bank and Trust Co. and other subsidiaries, the company provides commercial and consumer banking, mortgage lending, wealth management and trust services, and insurance. Its offerings serve individuals, businesses, nonprofits, and other organizations. Univest primarily serves southeastern Pennsylvania, including communities in the greater Philadelphia region and surrounding areas.