Comparing HarborOne Bancorp (NASDAQ:HONE) & ChoiceOne Financial Services (NASDAQ:COFS)

HarborOne Bancorp (NASDAQ:HONEGet Rating) and ChoiceOne Financial Services (NASDAQ:COFSGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Earnings & Valuation

This table compares HarborOne Bancorp and ChoiceOne Financial Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HarborOne Bancorp $244.58 million 2.88 $58.52 million $1.01 13.59
ChoiceOne Financial Services $83.81 million 1.79 $22.04 million $2.80 7.16

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

Profitability

This table compares HarborOne Bancorp and ChoiceOne Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HarborOne Bancorp 22.78% 7.47% 1.12%
ChoiceOne Financial Services 25.43% 9.85% 0.93%

Dividends

HarborOne Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. ChoiceOne Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 5.0%. HarborOne Bancorp pays out 27.7% of its earnings in the form of a dividend. ChoiceOne Financial Services pays out 35.7% 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. HarborOne Bancorp has increased its dividend for 2 consecutive years and ChoiceOne Financial Services has increased its dividend for 11 consecutive years. ChoiceOne Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

57.4% of HarborOne Bancorp shares are held by institutional investors. Comparatively, 10.9% of ChoiceOne Financial Services shares are held by institutional investors. 6.0% of HarborOne Bancorp shares are held by company insiders. Comparatively, 6.9% of ChoiceOne Financial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for HarborOne Bancorp and ChoiceOne Financial Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HarborOne Bancorp 1 0 0 0 1.00
ChoiceOne Financial Services 0 0 0 0 N/A

HarborOne Bancorp presently has a consensus target price of $15.50, suggesting a potential upside of 12.89%. Given HarborOne Bancorp’s higher probable upside, equities analysts clearly believe HarborOne Bancorp is more favorable than ChoiceOne Financial Services.

Volatility & Risk

HarborOne Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, ChoiceOne Financial Services has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Summary

HarborOne Bancorp beats ChoiceOne Financial Services on 9 of the 15 factors compared between the two stocks.

About HarborOne Bancorp (Get Rating)

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and lending products comprise commercial real estate, commercial, residential mortgages, and consumer loans, including indirect automobile lease loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides a range of educational services, such as classes on small business, financial literacy, and personal enrichment. As of December 31, 2021, the company operated through a network of 30 full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island. It also had administrative offices in Brockton, Massachusetts, as well as 5 ATM locations in Massachusetts. The company was founded in 1917 and is based in Brockton, Massachusetts.

About ChoiceOne Financial Services (Get Rating)

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides community banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial loans, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers safe deposit and automated transaction machine services; and alternative investment products, including annuities and mutual funds, as well as sells insurance policies, such as life and health for commercial and consumer clients. It operates 32 full-service offices in Kent, Muskegon, Newaygo, and Ottawa, Lapeer, Macomb, and St. Clair counties, Michigan. The company also operates three loan production offices. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.

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