Contrasting First Hawaiian (FHB) and Origin Bancorp (OBNK)

First Hawaiian (NASDAQ:FHB) and Origin Bancorp (NASDAQ:OBNK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 3.9%. Origin Bancorp pays an annual dividend of $0.13 per share and has a dividend yield of 0.4%. First Hawaiian pays out 49.8% of its earnings in the form of a dividend. Origin Bancorp pays out 5.9% 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Hawaiian and Origin Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Hawaiian 0 2 3 0 2.60
Origin Bancorp 0 1 1 1 3.00

First Hawaiian currently has a consensus price target of $29.50, suggesting a potential upside of 10.20%. Origin Bancorp has a consensus price target of $43.00, suggesting a potential upside of 25.04%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Origin Bancorp is more favorable than First Hawaiian.

Profitability

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

Net Margins Return on Equity Return on Assets
First Hawaiian 32.05% 11.55% 1.41%
Origin Bancorp 22.50% 10.51% 1.14%

Institutional and Insider Ownership

81.5% of First Hawaiian shares are held by institutional investors. Comparatively, 47.5% of Origin Bancorp shares are held by institutional investors. 0.2% of First Hawaiian shares are held by company insiders. Comparatively, 7.3% of Origin Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First Hawaiian and Origin Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Hawaiian $825.04 million 4.38 $264.39 million $2.09 12.81
Origin Bancorp $229.34 million 3.56 $51.60 million $2.20 15.63

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

Summary

First Hawaiian beats Origin Bancorp on 9 of the 16 factors compared between the two stocks.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through Retail Banking and Commercial Banking segments. The company accepts various deposit products, such as checking and savings accounts, and time deposit accounts. Its lending activities include residential and commercial mortgage and real estate loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, commercial lease financing, and auto dealer financing. The company also offers credit cards; and individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, merchant processing, and retirement planning services. As of December 31, 2017, it operated 62 branches Oahu, Maui, Hawaii, Kauai, Guam, and Saipan. First Hawaiian, Inc. was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. The company was founded in 1858 and is headquartered in Honolulu, Hawaii. First Hawaiian, Inc. is a subsidiary of BancWest Corporation.

About Origin Bancorp

Origin Bancorp, Inc. operates as the holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients in Louisiana, Texas, and Mississippi. It accepts noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and offers single and multi-family real estate, residential construction, commercial building, and consumer loans, as well as loans to small and medium-sized businesses. The company also offers personal and commercial property, and casualty insurance products; and Internet banking and voice response information, cash management, overdraft protection, direct deposit, safe deposit box, U.S. savings bonds, and automatic account transfer services; and mortgage origination and servicing facilities. As of December 31, 2018, it operated 41 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

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