First Hawaiian (NASDAQ:FHB) versus PCB Bancorp (NASDAQ:PCB) Critical Review

First Hawaiian (NASDAQ:FHBGet Free Report) and PCB Bancorp (NASDAQ:PCBGet Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

97.6% of First Hawaiian shares are owned by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are owned by institutional investors. 0.5% of First Hawaiian shares are owned by company insiders. Comparatively, 25.7% of PCB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
First Hawaiian 20.90% 9.87% 0.95%
PCB Bancorp 18.97% 11.25% 1.18%

Earnings & Valuation

This table compares First Hawaiian and PCB Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Hawaiian $1.12 billion 2.44 $234.98 million $1.84 11.69
PCB Bancorp $161.86 million 1.40 $30.70 million $2.12 7.48

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

Volatility & Risk

First Hawaiian has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. PCB Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 4.5%. First Hawaiian pays out 56.5% of its earnings in the form of a dividend. PCB Bancorp pays out 34.0% 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. PCB Bancorp has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for First Hawaiian and PCB Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Hawaiian 2 2 0 0 1.50
PCB Bancorp 0 1 0 0 2.00

First Hawaiian presently has a consensus price target of $22.33, suggesting a potential upside of 3.83%. PCB Bancorp has a consensus price target of $17.00, suggesting a potential upside of 7.19%. Given PCB Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe PCB Bancorp is more favorable than First Hawaiian.

About First Hawaiian

(Get Free Report)

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. 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.

About PCB Bancorp

(Get Free Report)

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.

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