Financial Review: First Hawaiian (NASDAQ:FHB) & Bank7 (NASDAQ:BSVN)

Bank7 (NASDAQ:BSVN) and First Hawaiian (NASDAQ:FHB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Institutional & Insider Ownership

23.5% of Bank7 shares are owned by institutional investors. Comparatively, 97.6% of First Hawaiian shares are owned by institutional investors. 25.7% of Bank7 shares are owned by insiders. Comparatively, 0.7% of First Hawaiian shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Bank7 and First Hawaiian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	30.36%	16.48%	2.18%
First Hawaiian	24.41%	10.27%	1.19%

Dividends

Bank7 pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. Bank7 pays out 27.5% of its earnings in the form of a dividend. First Hawaiian pays out 45.2% 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. Bank7 has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Bank7 and First Hawaiian”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$137.26 million	3.85	$43.07 million	$4.37	12.70
First Hawaiian	$870.02 million	3.53	$276.27 million	$2.30	10.98

First Hawaiian has higher revenue and earnings than Bank7. First Hawaiian is trading at a lower price-to-earnings ratio than Bank7, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Bank7 and First Hawaiian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	1	0	3	0	2.50
First Hawaiian	2	7	2	0	2.00

Bank7 presently has a consensus price target of $61.67, suggesting a potential upside of 11.15%. First Hawaiian has a consensus price target of $29.38, suggesting a potential upside of 16.29%. Given First Hawaiian’s higher possible upside, analysts plainly believe First Hawaiian is more favorable than Bank7.

Volatility and Risk

Bank7 has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Summary

Bank7 beats First Hawaiian on 12 of the 17 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

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.