Bank of Hawaii (NYSE:BOH – Get Free Report) and Community Financial System (NYSE:CBU – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Insider & Institutional Ownership
82.2% of Bank of Hawaii shares are held by institutional investors. Comparatively, 73.8% of Community Financial System shares are held by institutional investors. 2.0% of Bank of Hawaii shares are held by insiders. Comparatively, 1.1% of Community Financial System shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Bank of Hawaii and Community Financial System”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank of Hawaii | $756.21 million | 3.49 | $205.90 million | $5.36 | 12.47 |
| Community Financial System | $1.01 billion | 3.05 | $210.46 million | $4.31 | 13.59 |
Community Financial System has higher revenue and earnings than Bank of Hawaii. Bank of Hawaii is trading at a lower price-to-earnings ratio than Community Financial System, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Bank of Hawaii and Community Financial System, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank of Hawaii | 0 | 6 | 2 | 0 | 2.25 |
| Community Financial System | 0 | 4 | 1 | 1 | 2.50 |
Bank of Hawaii currently has a consensus price target of $85.00, indicating a potential upside of 27.21%. Community Financial System has a consensus price target of $70.00, indicating a potential upside of 19.49%. Given Bank of Hawaii’s higher possible upside, analysts clearly believe Bank of Hawaii is more favorable than Community Financial System.
Profitability
This table compares Bank of Hawaii and Community Financial System’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank of Hawaii | 21.84% | 15.72% | 0.98% |
| Community Financial System | 21.79% | 11.47% | 1.32% |
Dividends
Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.2%. Community Financial System pays an annual dividend of $1.96 per share and has a dividend yield of 3.3%. Bank of Hawaii pays out 52.2% of its earnings in the form of a dividend. Community Financial System pays out 45.5% 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 and Community Financial System has raised its dividend for 33 consecutive years.
Risk & Volatility
Bank of Hawaii has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Community Financial System has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
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 Community Financial System
Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.
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