Critical Analysis: Zions Bancorporation, N.A. (NASDAQ:ZION) & Bank of Hawaii (NYSE:BOH)

Bank of Hawaii (NYSE:BOH) and Zions Bancorporation, N.A. (NASDAQ:ZION) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk & Volatility

Bank of Hawaii has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Zions Bancorporation, N.A. has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bank of Hawaii and Zions Bancorporation, N.A.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Hawaii	$683.29 million	4.08	$149.99 million	$4.08	17.17
Zions Bancorporation, N.A.	$3.31 billion	2.65	$784.00 million	$5.58	10.66

Zions Bancorporation, N.A. has higher revenue and earnings than Bank of Hawaii. Zions Bancorporation, N.A. is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bank of Hawaii and Zions Bancorporation, N.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Hawaii	17.41%	13.33%	0.77%
Zions Bancorporation, N.A.	17.22%	13.56%	0.98%

Dividends

Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.0%. Zions Bancorporation, N.A. pays an annual dividend of $1.80 per share and has a dividend yield of 3.0%. Bank of Hawaii pays out 68.6% of its earnings in the form of a dividend. Zions Bancorporation, N.A. pays out 32.3% 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. Bank of Hawaii has raised its dividend for 1 consecutive years and Zions Bancorporation, N.A. has raised its dividend for 12 consecutive years.

Insider and Institutional Ownership

82.2% of Bank of Hawaii shares are owned by institutional investors. Comparatively, 76.8% of Zions Bancorporation, N.A. shares are owned by institutional investors. 2.1% of Bank of Hawaii shares are owned by insiders. Comparatively, 2.2% of Zions Bancorporation, N.A. 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Bank of Hawaii and Zions Bancorporation, N.A., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Hawaii	1	3	1	0	2.00
Zions Bancorporation, N.A.	1	13	7	2	2.43

Bank of Hawaii currently has a consensus target price of $71.25, suggesting a potential upside of 1.70%. Zions Bancorporation, N.A. has a consensus target price of $61.35, suggesting a potential upside of 3.09%. Given Zions Bancorporation, N.A.’s stronger consensus rating and higher possible upside, analysts clearly believe Zions Bancorporation, N.A. is more favorable than Bank of Hawaii.

Summary

Zions Bancorporation, N.A. beats Bank of Hawaii on 13 of the 18 factors compared between the two stocks.

About Bank of Hawaii

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.

About Zions Bancorporation, N.A.

Zions Bancorporation, National Association provides various banking products and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. It operates through Zions Bank, California Bank & Trust, Amegy Bank, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington segments. The company offers commercial and small business banking services to small- and medium-sized businesses, such as commercial, industrial, and owner-occupied lending and leasing; municipal and public finance services; depository account and cash management services; commercial and small business cards; merchant processing services; corporate trust services; and correspondent banking and international lending services. It also provides capital markets and investment banking services, including loan syndications, foreign exchange services, interest rate derivatives, fixed income securities underwriting, advisory and capital raising, commercial mortgage-backed security conduit lending, and power and project financing; and commercial real estate lending services consisting of term and construction/land development financing for commercial and residential purposes. In addition, the company offers retail banking services comprising residential mortgages, home equity lines of credit, personal lines of credit, installment consumer loans, depository account services, consumer cards, and personal trust services; and wealth management services consisting of investment management, fiduciary and estate, and advanced business succession and estate planning services. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.