Critical Contrast: California First Leasing (OTCMKTS:CFNB) & Bank of Hawaii (NYSE:BOH)

Bank of Hawaii (NYSE:BOH) and California First Leasing (OTCMKTS:CFNB) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Risk and Volatility

Bank of Hawaii has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, California First Leasing has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Bank of Hawaii and California First Leasing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Hawaii	1	3	1	0	2.00
California First Leasing	0	0	0	0	0.00

Bank of Hawaii currently has a consensus target price of $71.25, suggesting a potential upside of 2.62%. Given Bank of Hawaii’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bank of Hawaii is more favorable than California First Leasing.

Profitability

This table compares Bank of Hawaii and California First Leasing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Hawaii	17.41%	13.33%	0.77%
California First Leasing	N/A	N/A	N/A

Dividends

Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.0%. California First Leasing pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Bank of Hawaii pays out 68.6% of its earnings in the form of a dividend. Bank of Hawaii has raised its dividend for 1 consecutive years. Bank of Hawaii is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Bank of Hawaii and California First Leasing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Hawaii	$1.04 billion	2.67	$149.99 million	$4.08	17.02
California First Leasing	N/A	N/A	N/A	N/A	N/A

Bank of Hawaii has higher revenue and earnings than California First Leasing.

Insider & Institutional Ownership

82.2% of Bank of Hawaii shares are held by institutional investors. Comparatively, 6.5% of California First Leasing shares are held by institutional investors. 2.1% of Bank of Hawaii shares are held by company insiders. Comparatively, 92.2% of California First Leasing shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Bank of Hawaii beats California First Leasing on 11 of the 13 factors compared between the two stocks.

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.

About California First Leasing

California First Leasing Corporation provides loans and lease financing for universities, businesses, and other commercial or non-profit organizations. The company was formerly known as California First National Bancorp and changed its name to California First Leasing Corporation in February 2021. California First Leasing Corporation was founded in 1977 and is based in Newport Beach, California.