First Hawaiian (NASDAQ:FHB) and Lakeland Financial (NASDAQ:LKFN) Head-To-Head Survey

Lakeland Financial (NASDAQ:LKFNGet Rating) and First Hawaiian (NASDAQ:FHBGet Rating) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Lakeland Financial has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Lakeland Financial and First Hawaiian, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lakeland Financial 0 1 0 0 2.00
First Hawaiian 1 4 0 0 1.80

Lakeland Financial presently has a consensus target price of $58.91, suggesting a potential downside of 24.09%. First Hawaiian has a consensus target price of $29.50, suggesting a potential upside of 5.39%. Given First Hawaiian’s higher possible upside, analysts plainly believe First Hawaiian is more favorable than Lakeland Financial.

Dividends

Lakeland Financial pays an annual dividend of $1.60 per share and has a dividend yield of 2.1%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 3.7%. Lakeland Financial pays out 42.8% of its earnings in the form of a dividend. First Hawaiian pays out 50.7% 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. Lakeland Financial has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

81.4% of Lakeland Financial shares are held by institutional investors. 4.0% of Lakeland Financial shares are held by company insiders. Comparatively, 0.6% of First Hawaiian shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Lakeland Financial and First Hawaiian’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lakeland Financial $237.94 million 8.42 $95.73 million $3.74 20.75
First Hawaiian $734.23 million 4.89 $265.73 million $2.05 13.65

First Hawaiian has higher revenue and earnings than Lakeland Financial. First Hawaiian is trading at a lower price-to-earnings ratio than Lakeland Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lakeland Financial and First Hawaiian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lakeland Financial 40.23% 14.09% 1.53%
First Hawaiian 36.19% 10.36% 1.14%

Summary

Lakeland Financial beats First Hawaiian on 11 of the 16 factors compared between the two stocks.

About Lakeland Financial (Get Rating)

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services. The company accepts various deposit products, such as noninterest bearing, interest-bearing checking, savings, money market, NOW, and demand deposits. Its loan products include commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, consumer 1-4 family mortgage, and other consumer loans. The company also offers retail and merchant credit card services; corporate treasury management, wealth advisory, and trust services; retail brokerage services, including various financial and investment products, such as annuities and life insurance; and mobile business banking and on-line treasury management services. It serves commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and health care industries. As of December 31, 2021, the company operated 51 offices in fifteen counties, including 45 offices in northern Indiana and six offices in central Indiana. Lakeland Financial Corporation was founded in 1872 and is headquartered in Warsaw, Indiana.

About First Hawaiian (Get Rating)

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company accepts various deposit products, including checking and savings accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, and small business loans and leases, as well as commercial lease and auto dealer financing. In addition, the company offers personal installment, credit card, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury, and merchant processing services. It operates a network of 54 branches, which include 49 in Hawaii, 3 in Guam, and 2 in Saipan. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.

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