First Hawaiian Bank (NASDAQ: FHB) and Glacier Bancorp (NASDAQ:GBCI) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility & Risk

First Hawaiian Bank has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
First Hawaiian Bank 24.70% 9.53% 1.19%
Glacier Bancorp 24.58% 11.31% 1.40%

Analyst Recommendations

This is a summary of current recommendations and price targets for First Hawaiian Bank and Glacier Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Hawaiian Bank 1 3 4 0 2.38
Glacier Bancorp 0 4 1 0 2.20

First Hawaiian Bank currently has a consensus price target of $32.71, indicating a potential upside of 5.80%. Glacier Bancorp has a consensus price target of $40.60, indicating a potential downside of 1.53%. Given First Hawaiian Bank’s stronger consensus rating and higher probable upside, research analysts clearly believe First Hawaiian Bank is more favorable than Glacier Bancorp.

Institutional and Insider Ownership

35.9% of First Hawaiian Bank shares are owned by institutional investors. Comparatively, 77.3% of Glacier Bancorp shares are owned by institutional investors. 0.1% of First Hawaiian Bank shares are owned by company insiders. Comparatively, 0.4% of Glacier Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

First Hawaiian Bank pays an annual dividend of $0.96 per share and has a dividend yield of 3.1%. Glacier Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.2%. First Hawaiian Bank pays out 58.2% of its earnings in the form of a dividend. Glacier Bancorp pays out 52.6% 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.

Valuation and Earnings

This table compares First Hawaiian Bank and Glacier Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Hawaiian Bank $776.37 million 5.56 $183.68 million $1.65 18.74
Glacier Bancorp $487.26 million 7.15 $116.37 million $1.75 23.56

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

Summary

Glacier Bancorp beats First Hawaiian Bank on 9 of the 16 factors compared between the two stocks.

First Hawaiian Bank Company Profile

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through Retail Banking and Commercial Banking segments. The company accepts various deposit products, such as checking and savings accounts, and time deposit accounts. Its lending activities include residential and commercial mortgage and real estate loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, commercial lease financing, and auto dealer financing. The company also offers credit cards; and individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, merchant processing, and retirement planning services. As of December 31, 2017, it operated 62 branches Oahu, Maui, Hawaii, Kauai, Guam, and Saipan. First Hawaiian, Inc. was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. The company was founded in 1858 and is headquartered in Honolulu, Hawaii. First Hawaiian, Inc. is a subsidiary of BancWest Corporation.

Glacier Bancorp Company Profile

Glacier Bancorp, Inc. operates as the holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers deposit products, including non-interest bearing deposits, interest bearing negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposits, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; second mortgage loans; home equity loans consisting of 1-4 family junior lien mortgages, and first and junior lien lines of credit secured by residential real estate; and agriculture loans. Further, the company provides mortgage origination services. As of December 31, 2017, it operated in 145 locations in Montana, Idaho, Utah, Washington, Wyoming, Colorado, and Arizona. The company was incorporated in 2004 and is headquartered in Kalispell, Montana.

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