Head-To-Head Comparison: First Hawaiian (FHB) and Hancock (HBHC)

First Hawaiian (NASDAQ: FHB) and Hancock (NASDAQ:HBHC) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Dividends

First Hawaiian pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Hancock pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. First Hawaiian pays out 53.3% of its earnings in the form of a dividend. Hancock pays out 38.6% 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.

Institutional and Insider Ownership

35.7% of First Hawaiian shares are owned by institutional investors. Comparatively, 77.2% of Hancock shares are owned by institutional investors. 0.1% of First Hawaiian shares are owned by insiders. Comparatively, 1.2% of Hancock shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares First Hawaiian and Hancock’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Hawaiian $736.12 million 6.11 $230.17 million $1.65 19.52
Hancock $982.95 million 4.66 $149.29 million $2.49 21.59

First Hawaiian has higher earnings, but lower revenue than Hancock. First Hawaiian is trading at a lower price-to-earnings ratio than Hancock, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

First Hawaiian has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Hancock has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First Hawaiian and Hancock, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Hawaiian 1 3 1 0 2.00
Hancock 0 4 6 1 2.73

First Hawaiian presently has a consensus price target of $33.60, indicating a potential upside of 4.32%. Hancock has a consensus price target of $52.92, indicating a potential downside of 1.55%. Given First Hawaiian’s higher possible upside, research analysts plainly believe First Hawaiian is more favorable than Hancock.

Profitability

This table compares First Hawaiian and Hancock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Hawaiian 30.22% 9.02% 1.14%
Hancock 19.08% 8.27% 0.90%

Summary

Hancock beats First Hawaiian on 10 of the 17 factors compared between the two stocks.

About First Hawaiian

First Hawaiian, Inc., formerly BancWest Corporation, is a bank holding company. The Company owns First Hawaiian Bank. It operates through three segments: Retail Banking, which includes the financial products and services it provides to consumers, small businesses and certain commercial customers; Commercial Banking, which includes its corporate banking, residential and commercial real estate loans, commercial lease financing, auto dealer financing, deposit products and credit cards, and Treasury and Other, which includes its treasury business, which consists of corporate asset and liability management activities, including interest rate risk management. It provides a range of deposit accounts and lending services to commercial and consumer customers, as well as credit card products, wealth management services and merchant processing services. It provides a range of banking services to consumer and commercial customers, including deposit products, lending services and wealth management.

About Hancock

Hancock Holding Company is a financial services company that provides a network of service financial choices to the Gulf South region, through its bank subsidiary, Whitney Bank (the Bank), a Mississippi state bank. The Company operates through overall banking operations segment. The Bank operates under brands, such as Hancock Bank in Mississippi, Alabama and Florida, and Whitney Bank in Louisiana and Texas. The Bank operates across the Gulf South region, which consists of southern Mississippi; southern and central Alabama; southern Louisiana; the northern, central, and panhandle regions of Florida; Houston, Texas, and Nashville, Tennessee. The Bank offers a range of traditional and online community banking services to commercial, small business and retail customers, providing a range of transaction and savings deposit products, treasury management services and investment brokerage services, among others.

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