Bank of Hawaii (NYSE:BOH) versus First National Bank Alaska (OTCMKTS:FBAK) Head to Head Review

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

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.2%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.7%. First National Bank Alaska pays out 65.5% of its earnings in the form of a dividend. Bank of Hawaii pays out 60.6% 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. Bank of Hawaii has increased its dividend for 1 consecutive years.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$87.73 million	N/A	$67.05 million	$24.44	12.57
Bank of Hawaii	$716.63 million	4.19	$205.90 million	$4.62	16.32

Bank of Hawaii has higher revenue and earnings than First National Bank Alaska. First National Bank Alaska 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

First National Bank Alaska has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for First National Bank Alaska and Bank of Hawaii, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
Bank of Hawaii	0	4	2	1	2.57

Bank of Hawaii has a consensus price target of $81.80, suggesting a potential upside of 8.46%. Given Bank of Hawaii’s stronger consensus rating and higher probable upside, analysts clearly believe Bank of Hawaii is more favorable than First National Bank Alaska.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	29.11%	14.98%	1.55%
Bank of Hawaii	19.30%	14.42%	0.86%

Insider & Institutional Ownership

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

Summary

Bank of Hawaii beats First National Bank Alaska on 12 of the 17 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

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.