First National (NASDAQ:FXNC) vs. Bank of Hawaii (NYSE:BOH) Financial Survey

First National (NASDAQ:FXNC) 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 valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First National	10.40%	7.36%	0.60%
Bank of Hawaii	14.54%	12.25%	0.64%

Valuation & Earnings

This table compares First National 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
First National	$55.16 million	1.98	$9.62 million	$1.43	12.15
Bank of Hawaii	$635.91 million	4.24	$171.20 million	$3.88	17.49

Bank of Hawaii has higher revenue and earnings than First National. First National 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 recent recommendations and price targets for First National and Bank of Hawaii, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	0	1	0	3.00
Bank of Hawaii	3	2	0	0	1.40

First National currently has a consensus target price of $21.00, indicating a potential upside of 20.90%. Bank of Hawaii has a consensus target price of $59.00, indicating a potential downside of 13.08%. Given First National’s stronger consensus rating and higher probable upside, analysts plainly believe First National is more favorable than Bank of Hawaii.

Institutional and Insider Ownership

33.9% of First National shares are held by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are held by institutional investors. 16.5% of First National shares are held by company insiders. Comparatively, 2.1% of Bank of Hawaii shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

First National has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Dividends

First National pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.1%. First National pays out 42.0% of its earnings in the form of a dividend. Bank of Hawaii pays out 72.2% 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.

Summary

Bank of Hawaii beats First National on 11 of the 16 factors compared between the two stocks.

About First National

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. In addition, the company's loan products include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. Further, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

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.