Critical Review: Hingham Institution for Savings (HIFS) versus People's United Financial (PBCT)
Hingham Institution for Savings (NASDAQ: HIFS) and People's United Financial (NASDAQ:PBCT) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
This table compares Hingham Institution for Savings and People's United Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hingham Institution for Savings||31.23%||N/A||N/A|
|People's United Financial||20.37%||6.69%||0.84%|
Hingham Institution for Savings has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, People's United Financial has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares Hingham Institution for Savings and People's United Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hingham Institution for Savings||$82.47 million||5.11||$25.76 million||$11.83||16.90|
|People's United Financial||$1.66 billion||4.08||$337.20 million||$0.95||20.46|
People's United Financial has higher revenue and earnings than Hingham Institution for Savings. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than People's United Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
30.6% of Hingham Institution for Savings shares are owned by institutional investors. Comparatively, 75.9% of People's United Financial shares are owned by institutional investors. 2.7% of People's United Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Hingham Institution for Savings pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. People's United Financial pays an annual dividend of $0.69 per share and has a dividend yield of 3.5%. Hingham Institution for Savings pays out 11.5% of its earnings in the form of a dividend. People's United Financial pays out 72.6% 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. People's United Financial has increased its dividend for 11 consecutive years. People's United Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and target prices for Hingham Institution for Savings and People's United Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hingham Institution for Savings||0||0||0||0||N/A|
|People's United Financial||2||4||0||0||1.67|
People's United Financial has a consensus target price of $19.63, indicating a potential upside of 0.95%. Given People's United Financial’s higher probable upside, analysts clearly believe People's United Financial is more favorable than Hingham Institution for Savings.
People's United Financial beats Hingham Institution for Savings on 11 of the 15 factors compared between the two stocks.
About Hingham Institution for Savings
Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.
About People's United Financial
People’s United Financial, Inc. is a bank holding company and a financial holding company of People’s United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.
Receive News & Ratings for Hingham Institution for Savings Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hingham Institution for Savings and related companies with MarketBeat.com's FREE daily email newsletter.