Enact vs Home BancShares

This page compares Enact and Home BancShares, outlining their business models, financial performance, and market context in a neutral, accessible way. It presents key factors shaping each company and contrasts approaches without asserting forecasts. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

ACT

Metric

HOMB

$5.55B

Market Cap

$5.60B

-0.06%

Potential Profit

12.94%

Buy

Analyst Rating

Buy

Investment Analysis

Enact

ACT

Pros

Enact maintains a strong capital position with a 2025 capital return guidance of $500 million, reflecting robust cash flow generation.
The company's insurance in-force portfolio grew to $272 billion, supported by a stable persistency rate of 83% despite challenging market conditions.
Enact's profitability metrics remain healthy, with a return on equity of 14.6% and a price-to-earnings ratio below sector average.

Considerations

Adjusted operating income declined 4% quarter-on-quarter, indicating some pressure on earnings growth in a tough housing market.
The company's exposure to the US housing finance sector makes it vulnerable to interest rate fluctuations and mortgage market downturns.
Enact's dividend yield is modest at 2.33%, which may limit appeal for income-focused investors compared to peers.

Home BancShares

HOMB

Pros

Home BancShares operates with a diversified banking model, offering commercial and retail banking services across multiple states.
The company has a history of consistent dividend payments, supporting its appeal to income-oriented investors.
Home BancShares maintains a relatively low beta, suggesting less volatility compared to broader market indices.

Considerations

The bank's growth has been constrained by regional economic conditions, limiting expansion opportunities outside its core markets.
Net interest margins have faced pressure due to competitive lending environments and shifting interest rate cycles.
Home BancShares' stock has limited analyst coverage, which may reduce transparency and investor confidence.

About The Companies

Enact (ACT)

Enact Holdings, Inc. is a prominent American company operating in the private mortgage insurance sector. Through its primary subsidiary, Enact Mortgage Insurance Corporation, it provides insurance that protects lenders and investors from losses if a borrower defaults on their home loan. This service is crucial as it helps facilitate the sale of mortgages in the secondary market to key institutions like Fannie Mae and Freddie Mac. Enact serves a diverse customer base, including national banks, local credit unions, and non-bank mortgage lenders, establishing long-standing relationships across the industry. As a key player in the US housing finance system, the company's performance is closely linked to the health of the residential property market. For investors, understanding Enact means looking at its role in enabling homeownership and the economic factors that influence the mortgage industry. Remember, the value of any investment can go down as well as up.

Home BancShares (HOMB)

Home Bancshares, Inc. (HOMB) is a US regional bank holding company that operates the Arvest Bank franchise across several Midwestern and Southern states. With a market capitalisation of about $5.35 billion, it focuses on commercial and consumer lending, deposit gathering and fee-based services for local businesses and households. Growth has historically come from both organic lending activity and acquisitions, which can widen geographic reach but also add integration and credit risk. HOMB’s earnings are sensitive to interest-rate moves, loan credit quality and local economic conditions. The company typically pays a dividend, but payouts depend on earnings, capital needs and regulatory constraints. This summary is for educational purposes only and not personalised financial advice; it is important to assess your own objectives, timeframe and risk tolerance before considering any investment. Returns are not guaranteed and share prices can fall as well as rise.

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Enact vs Home BancShares

Comparison Snapshot

Investment Analysis

Enact

Pros

Considerations

Home BancShares

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy ACT or HOMB in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Virtu vs Home BancShares

Piper Sandler vs Home BancShares

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Frequently asked questions

What is the main purpose of comparing Enact and Home BancShares on this page?

What does ‘capital position’ mean in Enact’s context?

How should I interpret ‘dividend payments’ in Home BancShares’ profile?

What is the significance of return on equity (ROE) in this comparison?

How should I think about earnings visibility for these two stocks?

What do ‘quality of earnings’ and ‘margin pressure’ tell us about risk?

How do market conditions influence these stocks differently?

What does a ‘low beta’ imply for Home BancShares in terms of volatility?

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Is there any forecast or recommendation implied by the data presented?

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Comparison Snapshot

About The Companies