First Hawaiian (FHB) versus Its Peers Financial Analysis

First Hawaiian (NASDAQ:FHB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare First Hawaiian to similar companies based on the strength of its dividends, valuation, earnings, risk, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares First Hawaiian and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
First Hawaiian	$1.17 billion	$276.27 million	11.38
First Hawaiian Competitors	$9.95 billion	$2.42 billion	17.38

First Hawaiian’s competitors have higher revenue and earnings than First Hawaiian. First Hawaiian is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

First Hawaiian has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, First Hawaiian’s competitors have a beta of 0.52, indicating that their average share price is 48% less volatile than the S&P 500.

Profitability

This table compares First Hawaiian and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	23.73%	9.83%	1.15%
First Hawaiian Competitors	15.66%	9.44%	0.93%

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. First Hawaiian pays out 46.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. First Hawaiian lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

97.6% of First Hawaiian shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 0.7% of First Hawaiian shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for First Hawaiian and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	2	6	2	0	2.00
First Hawaiian Competitors	7464	30192	27758	1465	2.35

First Hawaiian presently has a consensus price target of $29.00, suggesting a potential upside of 14.26%. As a group, “Banks” companies have a potential upside of 15.51%. Given First Hawaiian’s competitors stronger consensus rating and higher probable upside, analysts plainly believe First Hawaiian has less favorable growth aspects than its competitors.

Summary

First Hawaiian competitors beat First Hawaiian on 10 of the 15 factors compared.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.