Reviewing HarborOne Bancorp (NASDAQ:HONE) & Popular (NASDAQ:BPOP)

HarborOne Bancorp (NASDAQ:HONE) and Popular (NASDAQ:BPOP) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings & Valuation

This table compares HarborOne Bancorp and Popular’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HarborOne Bancorp $164.91 million 3.55 $11.39 million N/A N/A
Popular $2.67 billion 1.93 $618.16 million $4.77 11.22

Popular has higher revenue and earnings than HarborOne Bancorp.

Risk and Volatility

HarborOne Bancorp has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Popular has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for HarborOne Bancorp and Popular, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HarborOne Bancorp 0 1 1 0 2.50
Popular 0 1 5 0 2.83

HarborOne Bancorp currently has a consensus target price of $19.00, suggesting a potential upside of 5.67%. Popular has a consensus target price of $59.00, suggesting a potential upside of 10.24%. Given Popular’s stronger consensus rating and higher possible upside, analysts clearly believe Popular is more favorable than HarborOne Bancorp.

Insider and Institutional Ownership

19.8% of HarborOne Bancorp shares are held by institutional investors. Comparatively, 89.5% of Popular shares are held by institutional investors. 3.3% of HarborOne Bancorp shares are held by company insiders. Comparatively, 1.3% of Popular shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares HarborOne Bancorp and Popular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HarborOne Bancorp 6.38% 3.96% 0.43%
Popular 24.69% 10.58% 1.17%

Dividends

Popular pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. HarborOne Bancorp does not pay a dividend. Popular pays out 25.2% of its earnings in the form of a dividend. Popular has increased its dividend for 3 consecutive years.

Summary

Popular beats HarborOne Bancorp on 12 of the 16 factors compared between the two stocks.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and middle-market businesses, and municipalities throughout Southeastern New England. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and lending products comprise commercial real estate loans, commercial loans, construction loans, one- to four-family residential real estate loans, second mortgages and equity lines of credit, and auto and other consumer loans. The company, through its subsidiary, Merrimack Mortgage Company, LLC, also originates, sells, and services residential mortgage loans. As of December 31, 2017, it operated 14 full-service branches, 2 limited service branches, 1 commercial loan office, 1 lending office, and 13 free-standing ATMs. In addition, the company offers a range of educational services through ‘HarborOne U,' with classes on small business, financial literacy, and personal enrichment. HarborOne Bancorp, Inc. was founded in 1917 and is based in Brockton, Massachusetts. HarborOne Bancorp, Inc. is a subsidiary of Harborone Mutual Bancshares, Mhc.

About Popular

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services. The company accepts various deposit products. It also offers commercial and industrial loans; commercial real estate loans; residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, broker-dealer, and insurance services. As of December 31, 2018, it operated 172 branches, including 67 owned and 105 leased premises in Puerto Rico; 51 branches comprising 5 owned and 46 leased premises in New York, New Jersey, and Florida; and 619 ATMs in Puerto Rico, 22 ATMs in Virgin Islands, and 115 ATMs in the United States mainland. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

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