Unity Bancorp (NASDAQ:UNTY – Get Rating) and Bank of Hawaii (NYSE:BOH – Get Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Insider and Institutional Ownership
49.7% of Unity Bancorp shares are held by institutional investors. Comparatively, 71.6% of Bank of Hawaii shares are held by institutional investors. 32.4% of Unity Bancorp shares are held by insiders. Comparatively, 2.1% of Bank of Hawaii shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Unity Bancorp and Bank of Hawaii’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of Hawaii||35.44%||17.99%||1.09%|
Valuation and Earnings
This table compares Unity Bancorp and Bank of Hawaii’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Unity Bancorp||$96.83 million||3.12||$36.12 million||$3.47||8.31|
|Bank of Hawaii||$698.07 million||4.30||$253.37 million||$6.07||12.25|
Bank of Hawaii has higher revenue and earnings than Unity Bancorp. Unity Bancorp is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.
Unity Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.8%. Unity Bancorp pays out 11.5% of its earnings in the form of a dividend. Bank of Hawaii pays out 46.1% 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. Unity Bancorp has increased its dividend for 1 consecutive years and Bank of Hawaii has increased its dividend for 1 consecutive years.
Risk & Volatility
Unity Bancorp has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Unity Bancorp and Bank of Hawaii, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of Hawaii||0||1||0||0||2.00|
Unity Bancorp presently has a consensus price target of $33.00, indicating a potential upside of 14.38%. Bank of Hawaii has a consensus price target of $84.00, indicating a potential upside of 12.99%. Given Unity Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Unity Bancorp is more favorable than Bank of Hawaii.
Unity Bancorp beats Bank of Hawaii on 9 of the 16 factors compared between the two stocks.
Unity Bancorp Company Profile (Get Rating)
Unity Bancorp, Inc. operates as the holding company for Unity Bank that provides commercial and retail banking products and services to individuals, small and medium sized businesses, and professional communities. The company offers personal and business checking accounts, time deposits, money market accounts, and regular savings accounts, as well as noninterest and interest-bearing demand deposits. It also provides small business administration loans; commercial loans; and residential mortgage and consumer loans, including residential real estate, home equity lines and loans, and residential construction lines, as well as personal loans. the company offered its services through the Internet and nineteen branch offices located in Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, as well as Northampton County, Pennsylvania. Unity Bancorp, Inc. was incorporated in 1991 and is based in Clinton, New Jersey.
Bank of Hawaii Company Profile (Get Rating)
Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; 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; private and international client banking, investment, credit, and trust services to individuals and families, and high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. This segment operates 54 branch locations and 307 ATMs throughout Hawaii and the Pacific Islands, and a customer service center, as well as through online and mobile banking. The Commercial Banking segment provides 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; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment offers corporate asset and liability management services, including 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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