Reviewing First Hawaiian (NASDAQ:FHB) and Bankinter (OTCMKTS:BKNIY)

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

Risk and Volatility

First Hawaiian has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for First Hawaiian and Bankinter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	3	6	2	0	1.91
Bankinter	1	3	2	0	2.17

First Hawaiian currently has a consensus price target of $30.25, suggesting a potential upside of 16.03%. Given First Hawaiian’s higher probable upside, equities research analysts clearly believe First Hawaiian is more favorable than Bankinter.

Earnings and Valuation

This table compares First Hawaiian and Bankinter”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Hawaiian	$1.17 billion	2.72	$276.27 million	$2.30	11.33
Bankinter	$5.27 billion	3.37	$1.23 billion	$1.46	13.52

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

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.0%. Bankinter pays an annual dividend of $0.45 per share and has a dividend yield of 2.3%. First Hawaiian pays out 45.2% of its earnings in the form of a dividend. Bankinter pays out 30.8% 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.

Insider and Institutional Ownership

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

Profitability

This table compares First Hawaiian and Bankinter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	24.41%	10.27%	1.19%
Bankinter	24.27%	18.20%	0.90%

Summary

First Hawaiian beats Bankinter on 8 of the 15 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 Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.