First Hawaiian (NASDAQ:FHB) versus Zions Bancorporation, N.A. (NASDAQ:ZION) Critical Comparison

Zions Bancorporation, N.A. (NASDAQ:ZION) and First Hawaiian (NASDAQ:FHB) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Insider and Institutional Ownership

76.8% of Zions Bancorporation, N.A. shares are held by institutional investors. Comparatively, 97.6% of First Hawaiian shares are held by institutional investors. 2.2% of Zions Bancorporation, N.A. shares are held by insiders. Comparatively, 0.6% of First Hawaiian shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Zions Bancorporation, N.A. has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares Zions Bancorporation, N.A. and First Hawaiian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zions Bancorporation, N.A.	16.98%	13.76%	0.97%
First Hawaiian	21.45%	9.29%	1.04%

Valuation & Earnings

This table compares Zions Bancorporation, N.A. and First Hawaiian”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zions Bancorporation, N.A.	$4.99 billion	1.65	$784.00 million	$5.47	10.21
First Hawaiian	$1.17 billion	2.73	$230.13 million	$1.94	13.15

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

Dividends

Zions Bancorporation, N.A. pays an annual dividend of $1.80 per share and has a dividend yield of 3.2%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. Zions Bancorporation, N.A. pays out 32.9% of its earnings in the form of a dividend. First Hawaiian pays out 53.6% 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. Zions Bancorporation, N.A. has increased its dividend for 12 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Zions Bancorporation, N.A. and First Hawaiian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zions Bancorporation, N.A.	1	14	4	0	2.16
First Hawaiian	4	3	0	0	1.43

Zions Bancorporation, N.A. currently has a consensus target price of $60.7778, suggesting a potential upside of 8.80%. First Hawaiian has a consensus target price of $27.0714, suggesting a potential upside of 6.12%. Given Zions Bancorporation, N.A.’s stronger consensus rating and higher probable upside, analysts clearly believe Zions Bancorporation, N.A. is more favorable than First Hawaiian.

Summary

Zions Bancorporation, N.A. beats First Hawaiian on 11 of the 17 factors compared between the two stocks.

About Zions Bancorporation, N.A.

Zions Bancorporation, National Association provides various banking products and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. It operates through Zions Bank, California Bank & Trust, Amegy Bank, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington segments. The company offers commercial and small business banking services to small- and medium-sized businesses, such as commercial, industrial, and owner-occupied lending and leasing; municipal and public finance services; depository account and cash management services; commercial and small business cards; merchant processing services; corporate trust services; and correspondent banking and international lending services. It also provides capital markets and investment banking services, including loan syndications, foreign exchange services, interest rate derivatives, fixed income securities underwriting, advisory and capital raising, commercial mortgage-backed security conduit lending, and power and project financing; and commercial real estate lending services consisting of term and construction/land development financing for commercial and residential purposes. In addition, the company offers retail banking services comprising residential mortgages, home equity lines of credit, personal lines of credit, installment consumer loans, depository account services, consumer cards, and personal trust services; and wealth management services consisting of investment management, fiduciary and estate, and advanced business succession and estate planning services. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.

About First Hawaiian

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.