Contrasting HopFed Bancorp (HFBC) & Hudson City Bancorp (HCBK)

HopFed Bancorp (NASDAQ: HFBC) and Hudson City Bancorp (NASDAQ:HCBK) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares HopFed Bancorp and Hudson City Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HopFed Bancorp 11.09% 5.21% 0.51%
Hudson City Bancorp 28.49% 2.98% 0.40%

Institutional & Insider Ownership

46.7% of HopFed Bancorp shares are held by institutional investors. 4.3% of HopFed Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for HopFed Bancorp and Hudson City Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HopFed Bancorp 0 0 0 0 N/A
Hudson City Bancorp 0 0 0 0 N/A

Dividends

HopFed Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Hudson City Bancorp does not pay a dividend. HopFed Bancorp pays out 27.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares HopFed Bancorp and Hudson City Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
HopFed Bancorp $39.66 million 2.33 $2.90 million $0.73 18.99
Hudson City Bancorp N/A N/A N/A $0.23 N/A

HopFed Bancorp has higher revenue and earnings than Hudson City Bancorp. Hudson City Bancorp is trading at a lower price-to-earnings ratio than HopFed Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

HopFed Bancorp beats Hudson City Bancorp on 7 of the 9 factors compared between the two stocks.

About HopFed Bancorp

HopFed Bancorp, Inc. is a savings and loan holding company that operates through its subsidiary, Heritage Bank USA, Inc. (the Bank). The Bank is a Kentucky state chartered commercial bank based in Hopkinsville, Kentucky, with branch offices in Kentucky and Tennessee. The business of the Bank primarily consists of attracting deposits from the general public and investing such deposits in loans secured by single family residential real estate and investment securities, including United States Government and agency securities, municipal and corporate bonds, collateralized mortgages obligations (CMOs), and mortgage-backed securities. The Bank also originates single-family residential/construction loans, and multi-family and commercial real estate loans, as well as loans secured by deposits, other consumer loans and commercial loans.

About Hudson City Bancorp

Hudson City Bancorp, Inc. serves as the holding company of its subsidiary, Hudson City Savings Bank (the Bank). The Bank is a federal stock savings bank. The Company is a community and consumer-oriented retail savings bank offering traditional deposit products, residential real estate mortgage loans and consumer loans. In addition, it purchases residential mortgages, commercial real estate mortgages and interests in such loans and mortgage-backed securities and other securities issued by the United States government-sponsored enterprises (GSEs), as well as other investments permitted by applicable laws and regulations. The Company has two wholly owned and consolidated subsidiaries, including HudCiti Service Corporation and HC Value Broker Services, Inc.

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