Hanmi Financial (NASDAQ:HAFC) vs. Glacier Bancorp (NYSE:GBCI) Financial Review

Hanmi Financial (NASDAQ:HAFC) and Glacier Bancorp (NYSE:GBCI) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares Hanmi Financial and Glacier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanmi Financial	16.53%	9.59%	0.93%
Glacier Bancorp	17.52%	7.11%	0.85%

Risk & Volatility

Hanmi Financial has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Dividends

Hanmi Financial pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. Glacier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 3.2%. Hanmi Financial pays out 45.2% of its earnings in the form of a dividend. Glacier Bancorp pays out 64.7% 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. Hanmi Financial has raised its dividend for 1 consecutive years. Hanmi Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

88.7% of Hanmi Financial shares are held by institutional investors. Comparatively, 80.2% of Glacier Bancorp shares are held by institutional investors. 1.9% of Hanmi Financial shares are held by insiders. Comparatively, 0.5% of Glacier Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Hanmi Financial and Glacier Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanmi Financial	$430.37 million	1.88	$62.20 million	$2.39	11.24
Glacier Bancorp	$940.55 million	5.13	$190.14 million	$2.04	19.96

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

Analyst Ratings

This is a summary of recent ratings for Hanmi Financial and Glacier Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	3	2	1	2.67
Glacier Bancorp	0	1	0	1	3.00

Hanmi Financial presently has a consensus price target of $28.50, indicating a potential upside of 6.11%. Given Hanmi Financial’s higher possible upside, equities analysts clearly believe Hanmi Financial is more favorable than Glacier Bancorp.

Summary

Hanmi Financial beats Glacier Bancorp on 10 of the 17 factors compared between the two stocks.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposit, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of junior lien mortgages, and first and junior lien lines of credit secured by owner-occupied 1-4 family residences; and agriculture loans. Further, the company provides mortgage origination and loan servicing services. It has 224 locations, including 188 branches and 36 loan or administration offices in 75 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada. The company was founded in 1955 and is headquartered in Kalispell, Montana.