Reviewing NewtekOne (NASDAQ:NEWT) and Bank of Hawaii (NYSE:BOH)

NewtekOne (NASDAQ:NEWT) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$383.33 million	0.92	$60.51 million	$2.22	5.52
Bank of Hawaii	$1.07 billion	2.82	$205.90 million	$5.36	14.21

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for NewtekOne and Bank of Hawaii, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	1	4	1	0	2.00
Bank of Hawaii	0	6	2	0	2.25

NewtekOne currently has a consensus target price of $16.33, suggesting a potential upside of 33.34%. Bank of Hawaii has a consensus target price of $85.00, suggesting a potential upside of 11.63%. Given NewtekOne’s higher possible upside, equities analysts clearly believe NewtekOne is more favorable than Bank of Hawaii.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewtekOne	15.57%	17.97%	2.26%
Bank of Hawaii	21.84%	15.72%	0.98%

Insider & Institutional Ownership

38.4% of NewtekOne shares are owned by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are owned by institutional investors. 5.9% of NewtekOne shares are owned by company insiders. Comparatively, 2.0% of Bank of Hawaii shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

NewtekOne has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.2%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.7%. NewtekOne pays out 34.2% of its earnings in the form of a dividend. Bank of Hawaii pays out 52.2% 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. NewtekOne has raised its dividend for 1 consecutive years and Bank of Hawaii has raised its dividend for 1 consecutive years. NewtekOne is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

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

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.

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.