Wells Fargo & Company (NYSE:WFC – Get Free Report) and Hingham Institution for Savings (NASDAQ:HIFS – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Insider & Institutional Ownership
75.9% of Wells Fargo & Company shares are owned by institutional investors. Comparatively, 49.3% of Hingham Institution for Savings shares are owned by institutional investors. 0.1% of Wells Fargo & Company shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Wells Fargo & Company and Hingham Institution for Savings”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wells Fargo & Company | $123.53 billion | 2.01 | $21.34 billion | $6.88 | 11.93 |
| Hingham Institution for Savings | $236.78 million | 2.68 | $54.55 million | $30.02 | 9.68 |
Wells Fargo & Company has higher revenue and earnings than Hingham Institution for Savings. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than Wells Fargo & Company, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Wells Fargo & Company has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Profitability
This table compares Wells Fargo & Company and Hingham Institution for Savings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wells Fargo & Company | 17.55% | 13.85% | 1.06% |
| Hingham Institution for Savings | 25.94% | 8.24% | 0.88% |
Dividends
Wells Fargo & Company pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.9%. Wells Fargo & Company pays out 29.1% of its earnings in the form of a dividend. Hingham Institution for Savings pays out 8.4% 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. Wells Fargo & Company has raised its dividend for 4 consecutive years. Wells Fargo & Company is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Wells Fargo & Company and Hingham Institution for Savings, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wells Fargo & Company | 0 | 7 | 16 | 2 | 2.80 |
| Hingham Institution for Savings | 0 | 0 | 1 | 0 | 3.00 |
Wells Fargo & Company presently has a consensus price target of $99.47, indicating a potential upside of 21.18%. Given Wells Fargo & Company’s higher possible upside, equities analysts clearly believe Wells Fargo & Company is more favorable than Hingham Institution for Savings.
Summary
Wells Fargo & Company beats Hingham Institution for Savings on 13 of the 18 factors compared between the two stocks.
About Wells Fargo & Company
Wells Fargo & Co. is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The Consumer Banking and Lending segment offers consumer and small business banking, home lending, credit cards, auto, and personal lending. The Commercial Banking segment provides banking and credit products across industry sectors and municipalities, secured lending and lease products, and treasury management. The Corporate and Investment Banking segment is composed of corporate banking, investment banking, treasury management, commercial real estate lending and servicing, and equity and fixed income solutions, as well as sales, trading, and research capabilities. The Wealth and Investment Management segment refers to personalized wealth management, brokerage, financial planning, lending, private banking, trust, and fiduciary products and services. The company was founded by Henry Wells and William G. Fargo on March 18, 1852 and is headquartered in San Francisco, CA.
About Hingham Institution for Savings
Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.
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