Northrim BanCorp (NASDAQ:NRIM – Get Free Report) and Bank of Hawaii (NYSE:BOH – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Valuation & Earnings
This table compares Northrim BanCorp and Bank of Hawaii”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northrim BanCorp | $255.58 million | 2.36 | $64.61 million | $3.04 | 8.91 |
| Bank of Hawaii | $1.07 billion | 3.12 | $205.90 million | $4.95 | 16.99 |
Insider & Institutional Ownership
66.0% of Northrim BanCorp shares are held by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are held by institutional investors. 2.4% of Northrim BanCorp shares are held by insiders. Comparatively, 2.0% of Bank of Hawaii shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Northrim BanCorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.3%. Northrim BanCorp pays out 21.1% of its earnings in the form of a dividend. Bank of Hawaii pays out 56.6% 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. Northrim BanCorp has increased its dividend for 16 consecutive years and Bank of Hawaii has increased its dividend for 1 consecutive years.
Analyst Ratings
This is a summary of recent ratings and target prices for Northrim BanCorp and Bank of Hawaii, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northrim BanCorp | 0 | 2 | 2 | 0 | 2.50 |
| Bank of Hawaii | 0 | 5 | 3 | 0 | 2.38 |
Northrim BanCorp currently has a consensus target price of $31.50, indicating a potential upside of 16.28%. Bank of Hawaii has a consensus target price of $85.80, indicating a potential upside of 1.99%. Given Northrim BanCorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Northrim BanCorp is more favorable than Bank of Hawaii.
Profitability
This table compares Northrim BanCorp and Bank of Hawaii’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northrim BanCorp | 26.03% | 17.62% | 1.73% |
| Bank of Hawaii | 20.46% | 14.97% | 0.92% |
Risk & Volatility
Northrim BanCorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Summary
Northrim BanCorp beats Bank of Hawaii on 9 of the 17 factors compared between the two stocks.
About Northrim BanCorp
Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.
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.
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