Bank Hapoalim (OTCMKTS:BKHYY – Get Free Report) and ServisFirst Bancshares (NYSE:SFBS – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Bank Hapoalim and ServisFirst Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank Hapoalim | 0 | 1 | 0 | 1 | 3.00 |
| ServisFirst Bancshares | 0 | 1 | 3 | 1 | 3.00 |
ServisFirst Bancshares has a consensus target price of $47.67, indicating a potential upside of 19.93%. Given ServisFirst Bancshares’ higher possible upside, analysts clearly believe ServisFirst Bancshares is more favorable than Bank Hapoalim.
Volatility and Risk
Insider and Institutional Ownership
67.3% of ServisFirst Bancshares shares are owned by institutional investors. 6.5% of ServisFirst Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Bank Hapoalim and ServisFirst Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank Hapoalim | 22.88% | 14.08% | 1.17% |
| ServisFirst Bancshares | 30.95% | 17.42% | 1.82% |
Earnings and Valuation
This table compares Bank Hapoalim and ServisFirst Bancshares”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank Hapoalim | $12.56 billion | 2.60 | $2.84 billion | $11.32 | 11.06 |
| ServisFirst Bancshares | $1.02 billion | 4.27 | $276.60 million | $2.93 | 13.57 |
Bank Hapoalim has higher revenue and earnings than ServisFirst Bancshares. Bank Hapoalim is trading at a lower price-to-earnings ratio than ServisFirst Bancshares, indicating that it is currently the more affordable of the two stocks.
Dividends
Bank Hapoalim pays an annual dividend of $3.75 per share and has a dividend yield of 3.0%. ServisFirst Bancshares pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. Bank Hapoalim pays out 33.1% of its earnings in the form of a dividend. ServisFirst Bancshares pays out 25.9% 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. ServisFirst Bancshares has raised its dividend for 10 consecutive years.
Summary
ServisFirst Bancshares beats Bank Hapoalim on 11 of the 16 factors compared between the two stocks.
About Bank Hapoalim
Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.
About ServisFirst Bancshares
ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.
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