Head-To-Head Contrast: Hingham Institution for Savings (NASDAQ:HIFS) and Wells Fargo & Company (NYSE:WFC)

Hingham Institution for Savings (NASDAQ:HIFS) and Wells Fargo & Company (NYSE:WFC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Risk & Volatility

Hingham Institution for Savings has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Wells Fargo & Company has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Dividends

Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.9%. Wells Fargo & Company pays an annual dividend of $2.00 per share and has a dividend yield of 2.5%. Hingham Institution for Savings pays out 8.4% of its earnings in the form of a dividend. Wells Fargo & Company pays out 29.1% 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. Wells Fargo & Company has increased its dividend for 4 consecutive years. Wells Fargo & Company is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hingham Institution for Savings and Wells Fargo & Company, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hingham Institution for Savings	0	0	1	0	3.00
Wells Fargo & Company	0	9	14	2	2.72

Wells Fargo & Company has a consensus target price of $99.92, indicating a potential upside of 24.44%. Given Wells Fargo & Company’s higher possible upside, analysts plainly believe Wells Fargo & Company is more favorable than Hingham Institution for Savings.

Earnings & Valuation

This table compares Hingham Institution for Savings and Wells Fargo & Company”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hingham Institution for Savings	$236.78 million	2.61	$54.55 million	$30.02	9.46
Wells Fargo & Company	$123.53 billion	1.97	$21.34 billion	$6.88	11.67

Wells Fargo & Company has higher revenue and earnings than Hingham Institution for Savings. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than Wells Fargo & Company, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hingham Institution for Savings and Wells Fargo & Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hingham Institution for Savings	25.94%	8.24%	0.88%
Wells Fargo & Company	17.55%	13.85%	1.06%

Institutional & Insider Ownership

49.3% of Hingham Institution for Savings shares are owned by institutional investors. Comparatively, 75.9% of Wells Fargo & Company shares are owned by institutional investors. 0.1% of Wells Fargo & Company 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.

Summary

Wells Fargo & Company beats Hingham Institution for Savings on 13 of the 18 factors compared between the two stocks.

About Hingham Institution for Savings

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.

About Wells Fargo & Company

Wells Fargo & Co. is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The Consumer Banking and Lending segment offers consumer and small business banking, home lending, credit cards, auto, and personal lending. The Commercial Banking segment provides banking and credit products across industry sectors and municipalities, secured lending and lease products, and treasury management. The Corporate and Investment Banking segment is composed of corporate banking, investment banking, treasury management, commercial real estate lending and servicing, and equity and fixed income solutions, as well as sales, trading, and research capabilities. The Wealth and Investment Management segment refers to personalized wealth management, brokerage, financial planning, lending, private banking, trust, and fiduciary products and services. The company was founded by Henry Wells and William G. Fargo on March 18, 1852 and is headquartered in San Francisco, CA.