Comparing Hingham Institution for Savings (NASDAQ:HIFS) & First Bank (NASDAQ:FRBA)

First Bank (NASDAQ:FRBA) and Hingham Institution for Savings (NASDAQ:HIFS) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Dividends

First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.8%. First Bank pays out 21.1% of its earnings in the form of a dividend. Hingham Institution for Savings pays out 9.0% 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.

Earnings & Valuation

This table compares First Bank and Hingham Institution for Savings”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$245.83 million	2.11	$43.66 million	$1.71	12.06
Hingham Institution for Savings	$236.78 million	2.91	$54.55 million	$27.89	11.33

Hingham Institution for Savings has lower revenue, but higher earnings than First Bank. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than First Bank, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

First Bank has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for First Bank and Hingham Institution for Savings, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	0	2	3	0	2.60
Hingham Institution for Savings	0	0	1	0	3.00

First Bank currently has a consensus target price of $19.67, suggesting a potential downside of 4.63%. Given First Bank’s higher possible upside, equities analysts clearly believe First Bank is more favorable than Hingham Institution for Savings.

Profitability

This table compares First Bank and Hingham Institution for Savings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bank	17.73%	9.58%	1.07%
Hingham Institution for Savings	24.95%	8.81%	0.95%

Insider & Institutional Ownership

64.9% of First Bank shares are owned by institutional investors. Comparatively, 49.3% of Hingham Institution for Savings shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

First Bank beats Hingham Institution for Savings on 8 of the 15 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

About Hingham Institution for Savings

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.