Contrasting CPB (NYSE:CPF) & Bank of Hawaii (NYSE:BOH)

CPB (NYSE:CPF) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Profitability

This table compares CPB and Bank of Hawaii’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPB	21.17%	13.64%	1.06%
Bank of Hawaii	19.30%	14.42%	0.86%

Dividends

CPB pays an annual dividend of $1.12 per share and has a dividend yield of 3.4%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.7%. CPB pays out 39.2% of its earnings in the form of a dividend. Bank of Hawaii pays out 60.6% 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. CPB has raised its dividend for 1 consecutive years and Bank of Hawaii has raised its dividend for 1 consecutive years.

Risk and Volatility

CPB has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for CPB and Bank of Hawaii, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	1	2	0	2.67
Bank of Hawaii	0	4	2	1	2.57

CPB presently has a consensus price target of $34.50, suggesting a potential upside of 6.01%. Bank of Hawaii has a consensus price target of $81.80, suggesting a potential upside of 9.40%. Given Bank of Hawaii’s higher possible upside, analysts clearly believe Bank of Hawaii is more favorable than CPB.

Insider and Institutional Ownership

88.4% of CPB shares are owned by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are owned by institutional investors. 2.4% of CPB shares are owned by insiders. Comparatively, 2.1% of Bank of Hawaii shares are owned by 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.

Valuation & Earnings

This table compares CPB and Bank of Hawaii”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPB	$365.98 million	2.39	$53.41 million	$2.86	11.38
Bank of Hawaii	$716.63 million	4.15	$149.99 million	$4.62	16.18

Bank of Hawaii has higher revenue and earnings than CPB. CPB 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.

Summary

Bank of Hawaii beats CPB on 9 of the 16 factors compared between the two stocks.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.

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.