Hope Bancorp (NASDAQ: HOPE) and First Mid-Illinois Bancshares (NASDAQ:FMBH) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares Hope Bancorp and First Mid-Illinois Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hope Bancorp 24.38% 8.45% 1.17%
First Mid-Illinois Bancshares 22.04% 9.16% 0.94%

Analyst Ratings

This is a summary of recent recommendations for Hope Bancorp and First Mid-Illinois Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hope Bancorp 0 3 0 0 2.00
First Mid-Illinois Bancshares 0 2 0 0 2.00

Hope Bancorp currently has a consensus target price of $20.67, indicating a potential upside of 27.57%. First Mid-Illinois Bancshares has a consensus target price of $37.00, indicating a potential upside of 5.71%. Given Hope Bancorp’s higher possible upside, equities research analysts clearly believe Hope Bancorp is more favorable than First Mid-Illinois Bancshares.

Volatility and Risk

Hope Bancorp has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, First Mid-Illinois Bancshares has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500.

Dividends

Hope Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 3.2%. First Mid-Illinois Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 1.8%. Hope Bancorp pays out 47.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

79.5% of Hope Bancorp shares are owned by institutional investors. Comparatively, 20.1% of First Mid-Illinois Bancshares shares are owned by institutional investors. 5.2% of Hope Bancorp shares are owned by company insiders. Comparatively, 20.3% of First Mid-Illinois Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hope Bancorp and First Mid-Illinois Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hope Bancorp $502.80 million 4.36 $147.53 million $1.09 14.86
First Mid-Illinois Bancshares $109.60 million 4.00 N/A N/A N/A

Hope Bancorp has higher revenue and earnings than First Mid-Illinois Bancshares.

Summary

Hope Bancorp beats First Mid-Illinois Bancshares on 8 of the 12 factors compared between the two stocks.

Hope Bancorp Company Profile

Hope Bancorp, Inc., formerly BBCN Bancorp, Inc., is the holding company of Bank of Hope. Bank of Hope is the regional Korean-American bank in the United States. Bank of Hope operates approximately 85 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates small business administration (SBA) loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; residential mortgage loan production offices in California, and a representative office in Seoul, Korea. Bank of Hope specializes in business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the Federal Deposit Insurance Corporation (FDIC).

First Mid-Illinois Bancshares Company Profile

First Mid-Illinois Bancshares, Inc. is a financial holding company. The Company is engaged in the business of banking through its subsidiaries, First Mid-Illinois Bank & Trust, N.A. (First Mid Bank) and First Clover Leaf Bank, N.A. (First Clover Leaf Bank). The Company provides data processing services to affiliates through another subsidiary, Mid-Illinois Data Services, Inc. (MIDS). The Company offers insurance products and services to customers through its subsidiary, The Checkley Agency, Inc., doing business as First Mid Insurance Group (First Mid Insurance). The Company also owns three statutory business trusts, First Mid-Illinois Statutory Trust I (First Mid Trust I), and First Mid-Illinois Statutory Trust II (First Mid Trust II), and Clover Leaf Statutory Trust I (CLST Trust). As of December 31, 2016, the Company operated in three primary lines of business: community banking, wealth management, and insurance brokerage.

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