Bank of Hawaii (NYSE:BOH – Get Free Report) and Five Star Bancorp (NASDAQ:FSBC – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Earnings & Valuation
This table compares Bank of Hawaii and Five Star Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank of Hawaii | $1.07 billion | 2.89 | $205.90 million | $4.95 | 15.74 |
| Five Star Bancorp | $255.47 million | 3.68 | $61.61 million | $3.15 | 13.95 |
Analyst Ratings
This is a summary of current ratings and price targets for Bank of Hawaii and Five Star Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank of Hawaii | 0 | 4 | 3 | 0 | 2.43 |
| Five Star Bancorp | 0 | 2 | 4 | 0 | 2.67 |
Bank of Hawaii presently has a consensus target price of $85.40, suggesting a potential upside of 9.63%. Five Star Bancorp has a consensus target price of $42.30, suggesting a potential downside of 3.73%. Given Bank of Hawaii’s higher possible upside, analysts plainly believe Bank of Hawaii is more favorable than Five Star Bancorp.
Profitability
This table compares Bank of Hawaii and Five Star Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank of Hawaii | 20.46% | 14.97% | 0.92% |
| Five Star Bancorp | 25.23% | 15.32% | 1.42% |
Dividends
Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.6%. Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Bank of Hawaii pays out 56.6% of its earnings in the form of a dividend. Five Star Bancorp pays out 31.7% 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. Bank of Hawaii has raised its dividend for 1 consecutive years. Bank of Hawaii is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Bank of Hawaii has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Insider and Institutional Ownership
82.2% of Bank of Hawaii shares are owned by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are owned by institutional investors. 2.0% of Bank of Hawaii shares are owned by company insiders. Comparatively, 21.8% of Five Star Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Bank of Hawaii beats Five Star Bancorp on 9 of the 17 factors compared between the two stocks.
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.
About Five Star Bancorp
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.
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