WallStSmart

Home BancShares Inc (HOMB)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 2366% more annual revenue ($26.35B vs $1.07B). HOMB leads profitability with a 44.5% profit margin vs 28.7%. USB appears more attractively valued with a PEG of 1.80. USB earns a higher WallStSmart Score of 75/100 (B).

HOMB

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 7.3Quality: 5.3
Piotroski: 4/9

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HOMBUndervalued (+68.6%)

Margin of Safety

+68.6%

Fair Value

$94.66

Current Price

$26.62

$68.04 discount

UndervaluedFair: $94.66Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HOMB5 strengths · Avg: 9.6/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.5%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
56.9%10/10

Strong operational efficiency at 56.9%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

HOMB1 concerns · Avg: 2.0/10
PEG RatioValuation
3.012/10

Expensive relative to growth rate

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HOMB

The strongest argument for HOMB centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.5% and operating margin at 56.9%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : HOMB

The primary concerns for HOMB are PEG Ratio.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

USB carries more volatility with a beta of 1.04 — expect wider price swings.

HOMB is growing revenue faster at 10.8% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

USB scores higher overall (75/100 vs 69/100), backed by strong 28.7% margins. HOMB offers better value entry with a 68.6% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Home BancShares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Home Bancshares, Inc. (Conway, AR) is the banking holding company of Centennial Bank offering commercial and retail banking and related financial services to real estate companies, developers and investors, individuals and municipalities. The company is headquartered in Conway, Arkansas.

U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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