Contrasting Hope Bancorp (HOPE) & MutualFirst Financial (MFSF)
Hope Bancorp (NASDAQ: HOPE) and MutualFirst Financial (NASDAQ:MFSF) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional & Insider Ownership
82.1% of Hope Bancorp shares are owned by institutional investors. Comparatively, 47.9% of MutualFirst Financial shares are owned by institutional investors. 5.2% of Hope Bancorp shares are owned by insiders. Comparatively, 11.3% of MutualFirst Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Hope Bancorp has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, MutualFirst Financial has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Hope Bancorp and MutualFirst Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hope Bancorp currently has a consensus price target of $19.70, suggesting a potential upside of 9.08%. MutualFirst Financial has a consensus price target of $36.50, suggesting a potential upside of 2.24%. Given Hope Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Hope Bancorp is more favorable than MutualFirst Financial.
This table compares Hope Bancorp and MutualFirst Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Hope Bancorp and MutualFirst Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hope Bancorp||$638.52 million||3.83||$139.44 million||$1.03||17.53|
|MutualFirst Financial||$76.94 million||3.43||$12.31 million||$1.64||21.77|
Hope Bancorp has higher revenue and earnings than MutualFirst Financial. Hope Bancorp is trading at a lower price-to-earnings ratio than MutualFirst Financial, indicating that it is currently the more affordable of the two stocks.
Hope Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. MutualFirst Financial pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. Hope Bancorp pays out 50.5% of its earnings in the form of a dividend. MutualFirst Financial pays out 43.9% 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.
Hope Bancorp beats MutualFirst Financial on 11 of the 16 factors compared between the two stocks.
About Hope Bancorp
Hope Bancorp, Inc., formerly BBCN Bancorp, Inc., is the holding company of Bank of Hope. Bank of Hope is the regional Korean-American bank in the United States. Bank of Hope operates approximately 85 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates small business administration (SBA) loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; residential mortgage loan production offices in California, and a representative office in Seoul, Korea. Bank of Hope specializes in business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
About MutualFirst Financial
MutualFirst Financial, Inc. (MutualFirst) is the bank holding company of MutualBank (MutualBank or the Bank). The Bank offers financial services through approximately 30 full service retail financial center offices in Allen, Delaware, Elkhart, Grant, Kosciusko, Randolph, Saint Joseph and Wabash counties in Indiana. MutualBank also has trust offices in Carmel and Crawfordsville, Indiana and a loan origination office in New Buffalo, Michigan. The Bank has a subsidiary, Summit Mortgage, Inc., that operates a mortgage banking firm in Fort Wayne, Indiana. In addition, it originates residential mortgage and commercial loans. MutualWealth and MutualFinancial Advisors are the wealth management and brokerage divisions of the Bank that provide a range of fee-based financial services, including trust, investment, insurance, broker advisory, retirement plan and private banking services, in its market areas.
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