Head-To-Head Survey: Summit State Bank (NASDAQ:SSBI) & Bank of Hawaii (NYSE:BOH)

Summit State Bank (NASDAQ:SSBI) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Profitability

This table compares Summit State Bank and Bank of Hawaii’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit State Bank	-1.41%	N/A	N/A
Bank of Hawaii	17.41%	13.33%	0.77%

Valuation and Earnings

This table compares Summit State Bank and Bank of Hawaii”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit State Bank	$35.97 million	2.04	-$3.66 million	($0.13)	-83.31
Bank of Hawaii	$683.29 million	3.82	$149.99 million	$4.08	16.06

Bank of Hawaii has higher revenue and earnings than Summit State Bank. Summit State Bank is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

82.2% of Bank of Hawaii shares are owned by institutional investors. 2.1% of Bank of Hawaii shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Summit State Bank and Bank of Hawaii, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit State Bank	1	0	0	0	1.00
Bank of Hawaii	1	4	1	0	2.00

Bank of Hawaii has a consensus price target of $73.20, suggesting a potential upside of 11.69%. Given Bank of Hawaii’s stronger consensus rating and higher possible upside, analysts clearly believe Bank of Hawaii is more favorable than Summit State Bank.

Risk and Volatility

Summit State Bank has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Dividends

Summit State Bank pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.3%. Summit State Bank pays out -123.1% of its earnings in the form of a dividend. Bank of Hawaii pays out 68.6% 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. Bank of Hawaii has increased its dividend for 1 consecutive years. Bank of Hawaii is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Bank of Hawaii beats Summit State Bank on 16 of the 17 factors compared between the two stocks.

About Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.

About Bank of Hawaii

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.