Contrasting Bank of Hawaii (BOH) & Bank Mutual (BKMU)
Bank of Hawaii (NYSE: BOH) and Bank Mutual (NASDAQ:BKMU) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
This is a summary of recent ratings and price targets for Bank of Hawaii and Bank Mutual, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of Hawaii||1||4||0||0||1.80|
Volatility & Risk
Bank of Hawaii has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Bank Mutual has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Valuation and Earnings
This table compares Bank of Hawaii and Bank Mutual’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Bank of Hawaii||$655.24 million||5.18||$181.46 million||$4.35||18.37|
|Bank Mutual||$109.99 million||4.29||$16.95 million||$0.34||30.15|
Bank of Hawaii has higher revenue and earnings than Bank Mutual. Bank of Hawaii is trading at a lower price-to-earnings ratio than Bank Mutual, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
75.7% of Bank of Hawaii shares are held by institutional investors. Comparatively, 55.4% of Bank Mutual shares are held by institutional investors. 2.2% of Bank of Hawaii shares are held by insiders. Comparatively, 10.0% of Bank Mutual shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Bank of Hawaii pays an annual dividend of $2.08 per share and has a dividend yield of 2.6%. Bank Mutual pays an annual dividend of $0.22 per share and has a dividend yield of 2.1%. Bank of Hawaii pays out 47.8% of its earnings in the form of a dividend. Bank Mutual pays out 64.7% 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. Bank of Hawaii is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Bank of Hawaii and Bank Mutual’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of Hawaii||27.27%||15.45%||1.10%|
Bank of Hawaii beats Bank Mutual on 12 of the 15 factors compared between the two stocks.
Bank of Hawaii Company Profile
Bank of Hawaii Corporation is a bank holding company that operates through its subsidiary, Bank of Hawaii (the Bank). The Bank provides a range of financial products and services primarily to customers in Hawaii, Guam and other Pacific Islands. It operates in four segments: Retail Banking, Commercial Banking, Investment Services, and Treasury and Other. The Retail Banking segment offers a range of financial products and services to consumers and small businesses. The Commercial Banking segment offers products, including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing and deposit products. The Investment Services segment offers private banking and international client banking, trust services, investment management and institutional investment advisory services. The Treasury and Other segment consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business.
Bank Mutual Company Profile
Bank Mutual Corporation is a savings and loan holding company. The Company owns Bank Mutual (the Bank), a federally-chartered savings bank. The Bank is engaged in the business of community banking, which includes attracting deposits from and making loans to the general public and private businesses, as well as governmental and non-profit entities. In addition to deposits, the Bank obtains funds through borrowings from the Federal Home Loan Bank (FHLB) of Chicago. These funding sources are used to originate loans, including commercial and industrial loans, multi-family residential loans, non-residential commercial real estate loans, one- to four-family loans, home equity loans and other consumer loans. The Bank also purchases and/or participates in loans from third-party financial institutions and is a seller of residential loans in the secondary market. It also invests in mortgage-related and other investment securities.
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