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Home Capital Group Inc HMCBF


Primary Symbol: T.HCG

Home Capital Group Inc. is a Canada-based holding company that operates through its principal subsidiary, Home Trust Company (Home Trust). Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank offer deposits through brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Its mortgage lending includes classic single-family residential lending, insured residential lending, residential commercial lending, and non-residential commercial lending. Its consumer lending loan portfolio comprises credit cards, lines of credit and other consumer retail loans. In addition, the Company manages a treasury portfolio to support liquidity requirements and invest excess capital.


TSX:HCG - Post by User

Comment by Northforce13on Apr 18, 2020 2:30am
72 Views
Post# 30924784

RE:Valuation Check

RE:Valuation CheckWell, I've been noticing that too, this might have something to do with it;

* EQB's earnings yield based off of the past quarters earnings is still higher than HCG, even at these prices, EQB is selling at a lower P/E
* EQB's return on equity is higher than HCG, by a significant amount
* EQB pays a dividend, while HCG would return capital through buybacks, which it cannot currently do

So EQB sells at a lower P/E, has higher ROE and pays a dividend. 

There might be something of a decoupling between the two, as EQB comes to be regarded as a higher quality bank (which I would agree with), with more of a resemblance to the big six than tp HCG.  People looking to do some buying are probably looking at both and feeling EQB looks better.  

I own both, having bought a mountain of EQB and a fairly decent position in HCG a couple weeks back as posted on both boards.  

HCG does have much more capital than EQB, that's what HCG does have going for it.  

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