Hanmi Financial (HAFC) & Its Competitors Head-To-Head Survey

Hanmi Financial (NASDAQ:HAFC) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Hanmi Financial to similar businesses based on the strength of its risk, dividends, earnings, institutional ownership, valuation, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations for Hanmi Financial and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	4	2	0	2.33
Hanmi Financial Competitors	7464	30193	27759	1465	2.35

Hanmi Financial presently has a consensus price target of $33.40, suggesting a potential downside of 1.11%. As a group, “Banks” companies have a potential upside of 13.82%. Given Hanmi Financial’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Hanmi Financial has less favorable growth aspects than its competitors.

Risk and Volatility

Hanmi Financial has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Hanmi Financial’s competitors have a beta of 0.52, suggesting that their average stock price is 48% less volatile than the S&P 500.

Dividends

Hanmi Financial pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. Hanmi Financial pays out 36.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Hanmi Financial has raised its dividend for 1 consecutive years. Hanmi Financial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Hanmi Financial and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanmi Financial	20.06%	11.30%	1.15%
Hanmi Financial Competitors	15.66%	9.44%	0.93%

Institutional & Insider Ownership

88.7% of Hanmi Financial shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 2.1% of Hanmi Financial shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Hanmi Financial and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hanmi Financial	$444.90 million	$76.09 million	11.11
Hanmi Financial Competitors	$9.95 billion	$2.42 billion	17.42

Hanmi Financial’s competitors have higher revenue and earnings than Hanmi Financial. Hanmi Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Hanmi Financial competitors beat Hanmi Financial on 10 of the 15 factors compared.

Hanmi Financial Company Profile

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.