Critical Survey: Omni Financial Services (OTCMKTS:OFSI) & Home BancShares (NYSE:HOMB)

Home BancShares (NYSE:HOMB) and Omni Financial Services (OTCMKTS:OFSI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Valuation and Earnings

This table compares Home BancShares and Omni Financial Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home BancShares	$1.05 billion	5.12	$402.24 million	$2.32	11.85
Omni Financial Services	N/A	N/A	N/A	N/A	N/A

Home BancShares has higher revenue and earnings than Omni Financial Services.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Home BancShares and Omni Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home BancShares	0	3	4	0	2.57
Omni Financial Services	0	0	0	0	0.00

Home BancShares currently has a consensus price target of $32.83, suggesting a potential upside of 19.44%. Given Home BancShares’ stronger consensus rating and higher probable upside, equities analysts plainly believe Home BancShares is more favorable than Omni Financial Services.

Risk and Volatility

Home BancShares has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Omni Financial Services has a beta of 3.26, indicating that its share price is 226% more volatile than the S&P 500.

Profitability

This table compares Home BancShares and Omni Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home BancShares	31.20%	10.94%	1.96%
Omni Financial Services	N/A	N/A	N/A

Insider & Institutional Ownership

67.3% of Home BancShares shares are held by institutional investors. 6.3% of Home BancShares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Home BancShares beats Omni Financial Services on 9 of the 10 factors compared between the two stocks.

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.

About Omni Financial Services

OMNI Financial Services, Inc. provides various financial products and services to individuals, professionals, and business owners. The company offers deferred annuities, fixed annuities, and immediate annuities; and group medical, key employee, survivor life, disability, fixed life, long term care, and term life insurance products. It also provides college funding, retirement, and estate planning services. The company was founded in 1976 and is headquartered in Fort Myers, Florida.