Hanover Bancorp (NASDAQ:HNVR – Get Free Report) and Banner (NASDAQ:BANR – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Analyst Ratings
This is a summary of recent ratings and price targets for Hanover Bancorp and Banner, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hanover Bancorp | 0 | 1 | 1 | 0 | 2.50 |
| Banner | 0 | 3 | 3 | 0 | 2.50 |
Hanover Bancorp presently has a consensus target price of $22.00, suggesting a potential downside of 1.43%. Banner has a consensus target price of $67.00, suggesting a potential downside of 0.84%. Given Banner’s higher possible upside, analysts clearly believe Banner is more favorable than Hanover Bancorp.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hanover Bancorp | $62.58 million | 2.55 | $3.52 million | $1.65 | 13.53 |
| Banner | $594.20 million | 3.92 | $183.62 million | $4.78 | 14.14 |
Banner has higher revenue and earnings than Hanover Bancorp. Hanover Bancorp is trading at a lower price-to-earnings ratio than Banner, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hanover Bancorp and Banner’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hanover Bancorp | 8.39% | 6.77% | 0.54% |
| Banner | 20.28% | 10.22% | 1.10% |
Institutional & Insider Ownership
15.0% of Hanover Bancorp shares are held by institutional investors. Comparatively, 87.3% of Banner shares are held by institutional investors. 24.8% of Hanover Bancorp shares are held by insiders. Comparatively, 1.6% of Banner shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Dividends
Hanover Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Banner pays an annual dividend of $1.92 per share and has a dividend yield of 2.8%. Hanover Bancorp pays out 24.2% of its earnings in the form of a dividend. Banner pays out 40.2% 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.
Risk and Volatility
Hanover Bancorp has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500. Comparatively, Banner has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
Summary
Banner beats Hanover Bancorp on 13 of the 15 factors compared between the two stocks.
About Hanover Bancorp
Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.
About Banner
Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.
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