Head to Head Review: Bank of Hawaii (NYSE:BOH) vs. Plumas Bancorp (NASDAQ:PLBC)

Plumas Bancorp (NASDAQ:PLBC) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Plumas Bancorp	30.81%	15.71%	1.78%
Bank of Hawaii	16.30%	12.67%	0.72%

Analyst Ratings

This is a summary of current ratings and recommmendations for Plumas Bancorp and Bank of Hawaii, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plumas Bancorp	0	0	3	0	3.00
Bank of Hawaii	2	2	1	0	1.80

Plumas Bancorp presently has a consensus target price of $58.00, suggesting a potential upside of 40.06%. Bank of Hawaii has a consensus target price of $74.40, suggesting a potential upside of 13.38%. Given Plumas Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Plumas Bancorp is more favorable than Bank of Hawaii.

Earnings & Valuation

This table compares Plumas Bancorp and Bank of Hawaii”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plumas Bancorp	$93.11 million	3.09	$28.62 million	$4.85	8.54
Bank of Hawaii	$1.04 billion	2.52	$149.99 million	$3.81	17.22

Bank of Hawaii has higher revenue and earnings than Plumas Bancorp. Plumas 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.

Volatility and Risk

Plumas Bancorp has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Dividends

Plumas Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.3%. Plumas Bancorp pays out 24.7% of its earnings in the form of a dividend. Bank of Hawaii pays out 73.5% 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. Plumas Bancorp has increased its dividend for 1 consecutive years and Bank of Hawaii has increased its dividend for 1 consecutive years.

Insider and Institutional Ownership

41.7% of Plumas Bancorp shares are held by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are held by institutional investors. 7.7% of Plumas 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, endowments and large money managers believe a company is poised for long-term growth.

Summary

Plumas Bancorp beats Bank of Hawaii on 10 of the 16 factors compared between the two stocks.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.

About Bank of Hawaii

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, overdraft 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, as well as 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. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also 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 provides 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.