Hingham Institution for Savings (NASDAQ:HIFS – Get Free Report) and Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Analyst Ratings
This is a breakdown of current recommendations for Hingham Institution for Savings and Enterprise Financial Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hingham Institution for Savings | 0 | 0 | 1 | 0 | 3.00 |
| Enterprise Financial Services | 0 | 2 | 4 | 1 | 2.86 |
Enterprise Financial Services has a consensus target price of $70.00, indicating a potential upside of 18.10%. Given Enterprise Financial Services’ higher probable upside, analysts plainly believe Enterprise Financial Services is more favorable than Hingham Institution for Savings.
Dividends
Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.9%. Enterprise Financial Services pays an annual dividend of $1.40 per share and has a dividend yield of 2.4%. Hingham Institution for Savings pays out 8.4% of its earnings in the form of a dividend. Enterprise Financial Services pays out 27.8% 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. Enterprise Financial Services has raised its dividend for 11 consecutive years. Enterprise Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Hingham Institution for Savings has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Enterprise Financial Services has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Institutional and Insider Ownership
49.3% of Hingham Institution for Savings shares are owned by institutional investors. Comparatively, 72.2% of Enterprise Financial Services shares are owned by institutional investors. 2.2% of Enterprise Financial Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Hingham Institution for Savings and Enterprise Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hingham Institution for Savings | 25.94% | 8.24% | 0.88% |
| Enterprise Financial Services | 18.72% | 9.70% | 1.11% |
Earnings and Valuation
This table compares Hingham Institution for Savings and Enterprise Financial Services”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hingham Institution for Savings | $236.78 million | 2.71 | $54.55 million | $30.02 | 9.79 |
| Enterprise Financial Services | $643.45 million | 3.33 | $201.37 million | $5.03 | 11.78 |
Enterprise Financial Services has higher revenue and earnings than Hingham Institution for Savings. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than Enterprise Financial Services, indicating that it is currently the more affordable of the two stocks.
Summary
Enterprise Financial Services beats Hingham Institution for Savings on 12 of the 18 factors compared between the two stocks.
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.
About Enterprise Financial Services
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
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