Reviewing First Hawaiian (NASDAQ:FHB) & TriCo Bancshares (NASDAQ:TCBK)

First Hawaiian (NASDAQ:FHB) and TriCo Bancshares (NASDAQ:TCBK) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Institutional and Insider Ownership

97.6% of First Hawaiian shares are held by institutional investors. Comparatively, 59.1% of TriCo Bancshares shares are held by institutional investors. 0.7% of First Hawaiian shares are held by company insiders. Comparatively, 4.9% of TriCo Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Hawaiian and TriCo Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	24.44%	10.39%	1.18%
TriCo Bancshares	23.71%	9.87%	1.30%

Volatility and Risk

First Hawaiian has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for First Hawaiian and TriCo Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	3	5	1	0	1.78
TriCo Bancshares	0	2	4	1	2.86

First Hawaiian presently has a consensus target price of $27.56, suggesting a potential upside of 1.41%. TriCo Bancshares has a consensus target price of $54.60, suggesting a potential upside of 7.93%. Given TriCo Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe TriCo Bancshares is more favorable than First Hawaiian.

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 3.8%. TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.8%. First Hawaiian pays out 45.6% of its earnings in the form of a dividend. TriCo Bancshares pays out 36.5% 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. TriCo Bancshares has raised its dividend for 12 consecutive years.

Earnings and Valuation

This table compares First Hawaiian and TriCo Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Hawaiian	$1.17 billion	2.83	$276.27 million	$2.28	11.92
TriCo Bancshares	$538.91 million	3.00	$121.56 million	$3.95	12.81

First Hawaiian has higher revenue and earnings than TriCo Bancshares. First Hawaiian is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

TriCo Bancshares beats First Hawaiian on 11 of the 18 factors compared between the two stocks.

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.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.