First Hawaiian (NASDAQ:FHB) and QNB (OTCMKTS:QNBC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares First Hawaiian and QNB’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Hawaiian $776.37 million 4.08 $183.68 million $1.65 14.25
QNB $44.99 million 3.51 $8.28 million N/A N/A

First Hawaiian has higher revenue and earnings than QNB.

Dividends

First Hawaiian pays an annual dividend of $0.96 per share and has a dividend yield of 4.1%. QNB pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. First Hawaiian pays out 58.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

50.8% of First Hawaiian shares are held by institutional investors. Comparatively, 11.5% of QNB shares are held by institutional investors. 0.1% of First Hawaiian shares are held by company insiders. Comparatively, 9.8% of QNB shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
First Hawaiian 26.14% 10.70% 1.31%
QNB 19.58% 11.83% 0.99%

Analyst Recommendations

This is a breakdown of recent ratings for First Hawaiian and QNB, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Hawaiian 1 4 4 0 2.33
QNB 0 0 0 0 N/A

First Hawaiian presently has a consensus target price of $32.25, indicating a potential upside of 37.18%. Given First Hawaiian’s higher possible upside, research analysts plainly believe First Hawaiian is more favorable than QNB.

Risk & Volatility

First Hawaiian has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, QNB has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Summary

First Hawaiian beats QNB on 9 of the 14 factors compared between the two stocks.

First Hawaiian 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.

QNB Company Profile

QNB Corp. operates as the holding company for QNB Bank that provides commercial and retail banking services for the residents and businesses in southeastern Pennsylvania. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; letters of credit, credit cards, and title insurance products; merchant services; ATM and debit card services; mortgage banking services; Internet- and mobile-banking, electronic bill payment, and remote deposit capture services; and other miscellaneous services and transactions, as well as invests in securities. As of December 31, 2017, the company operated 11 branches in Bucks, Montgomery, and Lehigh counties. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.

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