Blue Hills Bancorp (BHBK) & Associated Banc (ASB) Head-To-Head Contrast

Blue Hills Bancorp (NASDAQ:BHBK) and Associated Banc (NYSE:ASB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Blue Hills Bancorp and Associated Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Hills Bancorp 17.82% 5.72% 0.84%
Associated Banc 20.53% 9.44% 0.99%

Insider and Institutional Ownership

53.1% of Blue Hills Bancorp shares are held by institutional investors. Comparatively, 78.7% of Associated Banc shares are held by institutional investors. 6.6% of Blue Hills Bancorp shares are held by insiders. Comparatively, 2.1% of Associated Banc shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Blue Hills Bancorp and Associated Banc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Hills Bancorp 0 1 1 0 2.50
Associated Banc 0 9 1 0 2.10

Blue Hills Bancorp presently has a consensus target price of $24.84, suggesting a potential upside of 5.34%. Associated Banc has a consensus target price of $27.75, suggesting a potential upside of 18.29%. Given Associated Banc’s higher probable upside, analysts clearly believe Associated Banc is more favorable than Blue Hills Bancorp.

Dividends

Blue Hills Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Associated Banc pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Blue Hills Bancorp pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Associated Banc pays out 39.5% of its earnings in the form of a dividend. Blue Hills Bancorp has increased its dividend for 2 consecutive years and Associated Banc has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Blue Hills Bancorp and Associated Banc’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blue Hills Bancorp $101.86 million 6.23 $16.48 million $0.56 42.11
Associated Banc $1.22 billion 3.19 $229.26 million $1.52 15.43

Associated Banc has higher revenue and earnings than Blue Hills Bancorp. Associated Banc is trading at a lower price-to-earnings ratio than Blue Hills Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Blue Hills Bancorp has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Associated Banc has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

Associated Banc beats Blue Hills Bancorp on 10 of the 15 factors compared between the two stocks.

Blue Hills Bancorp Company Profile

Blue Hills Bancorp, Inc. operates as the bank holding company for Blue Hills Bank that provides financial services to individuals, families, small to mid-size businesses, government, and non-profit organizations in Massachusetts. The company accepts passbook and statement savings, money market, commercial and regular checking, as well as certificates of deposit and IRAs. It also offers 1-4 family residential mortgage, commercial real estate, commercial business, construction, and consumer loans, as well as home equity loans and lines of credit; and investment securities. At December 31, 2017, the company operated through a network of 11 full-service branch offices located in Boston, Dedham, Hyde Park, Milton, Nantucket, Norwood, West Roxbury, and Westwood, Massachusetts. Blue Hills Bancorp, Inc. was founded in 1871 and is headquartered in Norwood, Massachusetts.

Associated Banc Company Profile

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses primarily in Wisconsin, Illinois, and Minnesota. Its Corporate and Commercial Specialty segment offers deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and loan syndications. This segment also provides specialized financial services that comprise interest rate risk management, foreign exchange solutions, and commodity hedging. The company's Community, Consumer, and Business segment offers checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; savings, money market deposit accounts, IRA accounts, certificates of deposit, and fixed and variable annuities, as well as full-service, discount, and online investment brokerage; investment advisory services; trust and investment management accounts; and insurance and other related products and services. This segment also engages in the administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services. Its Risk Management and Shared Services segment provides corporate risk management, credit administration, finance, treasury, operations, and technology services. As of March 16, 2018, the company operated 270 banking locations serving approximately 110 communities. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

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