First National of Nebraska (OTCMKTS:FINN) & Hanmi Financial (NASDAQ:HAFC) Critical Survey

First National of Nebraska (OTCMKTS:FINN) and Hanmi Financial (NASDAQ:HAFC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Profitability

This table compares First National of Nebraska and Hanmi Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National of Nebraska	N/A	N/A	N/A
Hanmi Financial	16.53%	9.59%	0.93%

Analyst Recommendations

This is a summary of current ratings and target prices for First National of Nebraska and Hanmi Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National of Nebraska	0	0	0	0	0.00
Hanmi Financial	0	2	2	1	2.80

Hanmi Financial has a consensus price target of $28.50, suggesting a potential upside of 9.74%. Given Hanmi Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Hanmi Financial is more favorable than First National of Nebraska.

Dividends

First National of Nebraska pays an annual dividend of $160.00 per share and has a dividend yield of 1.1%. Hanmi Financial pays an annual dividend of $1.08 per share and has a dividend yield of 4.2%. Hanmi Financial pays out 45.2% of its earnings in the form of a dividend. Hanmi Financial has increased 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

0.7% of First National of Nebraska shares are held by institutional investors. Comparatively, 88.7% of Hanmi Financial shares are held by institutional investors. 41.7% of First National of Nebraska shares are held by company insiders. Comparatively, 1.9% of Hanmi Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares First National of Nebraska and Hanmi Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National of Nebraska	$3.23 billion	1.18	$412.43 million	N/A	N/A
Hanmi Financial	$259.79 million	2.99	$62.20 million	$2.39	10.87

First National of Nebraska has higher revenue and earnings than Hanmi Financial.

Volatility and Risk

First National of Nebraska has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Hanmi Financial has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Summary

Hanmi Financial beats First National of Nebraska on 12 of the 16 factors compared between the two stocks.

About First National of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.

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.