Hanmi Financial (NASDAQ:HAFC) and Community Bancorp. (VT) (OTCMKTS:CMTV) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hanmi Financial and Community Bancorp. (VT), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanmi Financial 0 3 0 0 2.00
Community Bancorp. (VT) 0 0 0 0 N/A

Hanmi Financial currently has a consensus target price of $25.50, suggesting a potential upside of 19.94%. Given Hanmi Financial’s higher probable upside, research analysts plainly believe Hanmi Financial is more favorable than Community Bancorp. (VT).

Institutional and Insider Ownership

89.7% of Hanmi Financial shares are owned by institutional investors. 2.9% of Hanmi Financial shares are owned by company insiders. Comparatively, 7.7% of Community Bancorp. (VT) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hanmi Financial and Community Bancorp. (VT)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hanmi Financial $258.92 million 2.54 $57.87 million $1.90 11.19
Community Bancorp. (VT) $35.30 million 2.43 $8.40 million N/A N/A

Hanmi Financial has higher revenue and earnings than Community Bancorp. (VT).

Risk and Volatility

Hanmi Financial has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Community Bancorp. (VT) has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500.

Dividends

Hanmi Financial pays an annual dividend of $0.96 per share and has a dividend yield of 4.5%. Community Bancorp. (VT) pays an annual dividend of $0.76 per share and has a dividend yield of 4.6%. Hanmi Financial pays out 50.5% of its earnings in the form of a dividend. Hanmi Financial has increased its dividend for 5 consecutive years.

Profitability

This table compares Hanmi Financial and Community Bancorp. (VT)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hanmi Financial 21.65% 10.71% 1.10%
Community Bancorp. (VT) 22.68% 13.72% 1.18%

Summary

Hanmi Financial beats Community Bancorp. (VT) on 7 of the 13 factors compared between the two stocks.

Hanmi Financial Company Profile

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. It also provides real estate loans, including commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit, as well as international finance, and trade services and products comprising letters of credit, and import and export financing. In addition, the company offers consumer loans that include automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, unsecured lines of credit, and credit cards; and small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. As of January 24, 2019, it operated a network of 39 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was incorporated in 2000 and is headquartered in Los Angeles, California.

Community Bancorp. (VT) Company Profile

Community Bancorp. operates as the bank holding company for Community National Bank that provides retail banking services to residents, businesses, nonprofit organizations, and municipalities. The company accepts various deposit products, such as checking accounts, savings programs, certificates of deposit, and other deposit accounts. Its loan products include financing for commercial business properties, equipment, inventories, and accounts receivable, as well as letters of credit; commercial and residential real estate lending; personal, automobile, and boat/recreational vehicle loans; and tax-exempt loans, lines of credit, and term loans. The company also offers debit/credit cards; and cash management, repurchase agreement, automated clearing house, wire transfer, remote deposit capture, and automated teller machine services, as well as online, mobile, and telephone banking services. It operates through a main office in Derby; and 11 branch offices in northeastern and central Vermont. Community Bancorp. was founded in 1851 and is based in Derby, Vermont.

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