Bank of Hawaii (NYSE: BOH – Get a rating) and Old Second Bancorp (NASDAQ: OSBC – Get a rating) are both finance companies, but which stock is superior? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Risk and Volatility
Bank of Hawaii has a beta of 1.13, meaning its stock price is 13% more volatile than the S&P 500. Comparatively, Old Second Bancorp has a beta of 1.12, meaning its stock price is 12% more volatile than the S&P 500.
Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.7%. Old Second Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Bank of Hawaii pays 46.1% of its profits as a dividend. Old Second Bancorp pays 33.3% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Bank of Hawaii increased its dividend for 1 consecutive year and Old Second Bancorp increased its dividend for 1 consecutive year.
This is a breakdown of current recommendations and price targets for Bank of Hawaii and Old Second Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Bank of Hawaii||0||1||0||0||2.00|
|Former second Bancorp||0||0||1||1||3.50|
Bank of Hawaii currently has a consensus target price of $79.00, indicating a potential upside of 3.85%. Old Second Bancorp has a consensus target price of $20.25, indicating a potential upside of 39.18%. Given Old Second Bancorp’s stronger consensus rating and higher upside potential, analysts clearly believe Old Second Bancorp is more favorable than Bank of Hawaii.
This table compares the net margins, return on equity, and return on assets of Bank of Hawaii and Old Second Bancorp.
|Net margins||Return on equity||return on assets|
|Bank of Hawaii||35.44%||17.99%||1.09%|
|Former second Bancorp||12.26%||11.41%||0.97%|
Insider and Institutional Ownership
71.1% of Bank of Hawaii shares are held by institutional investors. By comparison, 50.8% of shares in Old Second Bancorp are held by institutional investors. 2.1% of Bank of Hawaii stock is held by insiders of the company. By comparison, 5.5% of shares in Old Second Bancorp are held by company insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Bank of Hawaii and Old Second Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Bank of Hawaii||$698.07 million||4.39||$253.37 million||$6.07||12.53|
|Former second Bancorp||$144.45 million||4.48||$20.04 million||$0.60||24:25|
Bank of Hawaii has higher revenue and profit than Old Second Bancorp. Bank of Hawaii is trading at a lower price-to-earnings ratio than Old Second Bancorp, indicating that it is currently the more affordable of the two stocks.
Bank of Hawaii beats Old Second Bancorp on 9 out of 17 factors compared between the two stocks.
About Bank of Hawaii
Bank of Hawaii Corporation operates as a bank holding company for Bank of Hawaii which 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 Others. The Consumer Banking segment offers checking, savings and term deposit accounts; residential mortgages, home equity lines of credit, auto loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; banking, investment, credit and trust services to individuals and families, and high net worth individuals; investment management; institutional investment advisory services to corporations, government entities and foundations; and brokerage offerings, including stocks, mutual funds, life insurance and annuity products. This segment operates 54 branches and 307 ATMs in Hawaii and the Pacific Islands, as well as a customer service center, as well as through online and mobile banking. The Business Banking segment offers business banking, commercial real estate lending, commercial lease financing, automobile dealership financing and deposit products. It offers commercial loan and deposit products to medium and large businesses and government entities; commercial real estate mortgages to investors, developers and builders; and international banking and merchant services. The Treasury and Others segment provides enterprise 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.
About Old Second Bancorp
Old Second Bancorp, Inc. operates as a bank holding company for Old Second National Bank which provides community banking services. It provides current, NOW, money market, savings, term deposit, individual retirement and checking accounts, as well as certificates of deposit accounts. The company also offers commercial loans; finance lease receivables; commercial real estate loans; building loans; residential real estate loans, such as residential first and second mortgages; home equity line of credit; consumer loans, including auto, home improvement and signature loans; installment loans and agricultural loans; residential mortgages; and verification of overdrafts. Also, it provides safe deposit box services; trust and wealth management services; and money orders, cashiers checks, foreign currencies, direct deposits, discount brokerage, debit and credit cards and other services, as well as the acquisition of US Treasury bills and bonds. Additionally, the company offers online and mobile banking; corporate cash management products, including remote and mobile deposit capture, investment transfer accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, locked accounts, automated clearinghouse transactions, account reconciliation, controlled disbursements, detailed and general information reporting, foreign and domestic wire transfers and vault services for foreign currency and coins. change ; and investment, agency, and custodial services for individuals, businesses, and nonprofits. It operates through 63 banking centers in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.
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