Hope Bancorp (HOPE) vs. Its Rivals Financial Review

Hope Bancorp (NASDAQ:HOPE) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Hope Bancorp to similar companies based on the strength of its analyst recommendations, risk, valuation, earnings, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

84.0% of Hope Bancorp shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 2.3% of Hope Bancorp shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Hope Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hope Bancorp	12.90%	5.97%	0.72%
Hope Bancorp Competitors	15.66%	9.47%	0.93%

Volatility & Risk

Hope Bancorp has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Hope Bancorp’s peers have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Dividends

Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.3%. Hope Bancorp pays out 53.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Hope Bancorp lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Hope Bancorp and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hope Bancorp	$967.63 million	$61.59 million	12.52
Hope Bancorp Competitors	$9.95 billion	$2.42 billion	21.03

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hope Bancorp and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hope Bancorp	1	4	2	0	2.14
Hope Bancorp Competitors	7497	30259	27869	1492	2.35

Hope Bancorp currently has a consensus target price of $14.00, indicating a potential upside of 7.53%. As a group, “Banks” companies have a potential upside of 14.43%. Given Hope Bancorp’s peers stronger consensus rating and higher possible upside, analysts plainly believe Hope Bancorp has less favorable growth aspects than its peers.

Summary

Hope Bancorp peers beat Hope Bancorp on 13 of the 15 factors compared.

Hope Bancorp Company Profile

Hope Bancorp, Inc. is the bank holding company for Bank of Hope, a commercial bank headquartered in Los Angeles. Bank of Hope was formed in 2016 through the merger of BBCN Bank and Wilshire Bank, bringing together institutions with roots in serving Korean-American communities. The bank provides deposit accounts, commercial and consumer lending, and other banking services to individuals and businesses. Its offerings include commercial real estate and business loans, small-business lending, treasury management, and online and mobile banking.