Republic First Bancorp (FRBK) versus Bank of Hawaii (BOH) Critical Review

Republic First Bancorp (NASDAQ: FRBK) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

Bank of Hawaii pays an annual dividend of $2.40 per share and has a dividend yield of 2.9%. Republic First Bancorp does not pay a dividend. Bank of Hawaii pays out 54.4% of its earnings in the form of a dividend. Bank of Hawaii has increased its dividend for 2 consecutive years.

Profitability

This table compares Republic First Bancorp and Bank of Hawaii’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Republic First Bancorp 9.06% 2.74% 0.27%
Bank of Hawaii 28.32% 16.26% 1.17%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Republic First Bancorp and Bank of Hawaii, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Republic First Bancorp 0 2 0 0 2.00
Bank of Hawaii 1 4 1 0 2.00

Republic First Bancorp currently has a consensus target price of $9.25, indicating a potential upside of 19.35%. Bank of Hawaii has a consensus target price of $90.50, indicating a potential upside of 9.58%. Given Republic First Bancorp’s higher possible upside, equities research analysts plainly believe Republic First Bancorp is more favorable than Bank of Hawaii.

Insider & Institutional Ownership

49.0% of Republic First Bancorp shares are owned by institutional investors. Comparatively, 74.9% of Bank of Hawaii shares are owned by institutional investors. 12.8% of Republic First Bancorp shares are owned by insiders. Comparatively, 2.0% of Bank of Hawaii shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Republic First Bancorp and Bank of Hawaii’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Republic First Bancorp $90.95 million 5.01 $8.90 million N/A N/A
Bank of Hawaii $689.21 million 5.04 $184.67 million $4.41 18.73

Bank of Hawaii has higher revenue and earnings than Republic First Bancorp.

Risk and Volatility

Republic First Bancorp has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

Bank of Hawaii beats Republic First Bancorp on 10 of the 15 factors compared between the two stocks.

Republic First Bancorp Company Profile

Republic First Bancorp, Inc. operates as the holding company for Republic First Bank that provides a range of credit and depository banking products and services to individuals and businesses primarily in Greater Philadelphia and Southern New Jersey. It offers consumer and commercial deposit, checking, interest-bearing demand, money market, savings, sweep, and individual retirement accounts, as well as certificates of deposit. The company also provides secured and unsecured commercial loans, real estate loans, construction and land development loans, automobile loans, home improvement loans, mortgages, home equity and overdraft lines of credit, and other products, as well as lockbox services. As of December 31, 2017, it operated 22 stores, including 11 stores located in Philadelphia and the surrounding suburbs of Plymouth Meeting, Bala Cynwyd, Wynnewood, Abington, and Media in Pennsylvania; and 11 stores located in the Southern New Jersey market in Haddonfield, Voorhees, Glassboro, Marlton, Berlin, Washington Township, Moorestown, Sicklerville, Medford, and Cherry Hill. Republic First Bancorp, Inc. was founded in 1987 and is based in Philadelphia, Pennsylvania.

Bank of Hawaii Company Profile

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides financial products and services in Hawaii, Guam, and other Pacific Islands. It operates through four segments: Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. The Retail Banking segment offers financial products and services to consumers and small businesses. It offers checking, savings, and time deposit accounts; loan and lease products, including residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; and retail insurance products. This segment provides its products and services through 69 branch locations and 387 ATMs in Hawaii and the Pacific Islands, as well as through a customer service center, and online and mobile banking. The Commercial Banking segment's product lines comprise corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. It offers commercial lending and deposit products to middle-market and large companies, and government entities; and commercial real estate mortgages to investors, developers, and builders. This segment also provides international banking and merchant services. The Investment Services and Private Banking segment offers private and international client banking, trust, investment management, and institutional investment advisory services for individuals and families, high-net-worth individuals, corporations, government entities, and foundations. This segment also provides brokerage offering equities, mutual funds, life insurance, and annuity products. The Treasury and Other segment offers corporate asset and liability management services, such as 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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