Stonegate Bank (SGBK) & Bank of Hawaii (BOH) Head to Head Analysis

Stonegate Bank (NASDAQ: SGBK) and Bank of Hawaii (NYSE:BOH) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Stonegate Bank and Bank of Hawaii’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stonegate Bank N/A N/A N/A $2.17 23.79
Bank of Hawaii $689.21 million 5.24 $184.67 million $4.34 19.62

Bank of Hawaii has higher revenue and earnings than Stonegate Bank. Bank of Hawaii is trading at a lower price-to-earnings ratio than Stonegate Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

Stonegate Bank pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. Bank of Hawaii pays an annual dividend of $2.08 per share and has a dividend yield of 2.4%. Stonegate Bank pays out 14.7% of its earnings in the form of a dividend. Bank of Hawaii pays out 47.9% 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. Stonegate Bank has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for Stonegate Bank and Bank of Hawaii, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stonegate Bank 0 2 0 0 2.00
Bank of Hawaii 1 4 1 0 2.00

Stonegate Bank presently has a consensus target price of $49.00, indicating a potential downside of 5.08%. Bank of Hawaii has a consensus target price of $90.90, indicating a potential upside of 6.78%. Given Bank of Hawaii’s higher probable upside, analysts plainly believe Bank of Hawaii is more favorable than Stonegate Bank.

Insider and Institutional Ownership

65.2% of Stonegate Bank shares are held by institutional investors. Comparatively, 77.2% of Bank of Hawaii shares are held by institutional investors. 2.2% of Bank of Hawaii shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Stonegate Bank 28.04% 8.07% 1.05%
Bank of Hawaii 26.80% 15.48% 1.11%

Summary

Bank of Hawaii beats Stonegate Bank on 9 of the 13 factors compared between the two stocks.

About Stonegate Bank

Stonegate Bank (the Bank) is a state chartered commercial bank in the State of Florida. The Bank provides a full range of banking services to individual and corporate customers from its branch locations in Southeast and West Florida. The Bank provides personal banking, business banking and wealth management services. The Bank’s loans portfolio includes commercial real estate, construction and land development, residential real estate, commercial and consumer loans. Its personal banking services include checking account, money market, savings account, certificate of deposits, individual retirement accounts, consumer loans and residential mortgage loans. It also offers card services, such as credit cards and debit cards. Its wealth management services include asset management, trust services, estate planning, insurance planning and retirement planning for business owners.

About Bank of Hawaii

Bank of Hawaii Corporation is a bank holding company that operates through its subsidiary, Bank of Hawaii (the Bank). The Bank provides a range of financial products and services primarily to customers in Hawaii, Guam and other Pacific Islands. It operates in four segments: Retail Banking, Commercial Banking, Investment Services, and Treasury and Other. The Retail Banking segment offers a range of financial products and services to consumers and small businesses. The Commercial Banking segment offers products, including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing and deposit products. The Investment Services segment offers private banking and international client banking, trust services, investment management and institutional investment advisory services. The Treasury and Other segment consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business.

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