Financial Survey: Bank of Hawaii (NYSE:BOH) & First Citizens BancShares (NASDAQ:FCNCA)

Bank of Hawaii (NYSE:BOH) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Insider & Institutional Ownership

82.2% of Bank of Hawaii shares are owned by institutional investors. Comparatively, 78.0% of First Citizens BancShares shares are owned by institutional investors. 2.5% of Bank of Hawaii shares are owned by insiders. Comparatively, 12.9% of First Citizens BancShares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Bank of Hawaii has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bank of Hawaii and First Citizens BancShares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Hawaii	$986.98 million	2.89	$171.20 million	$3.33	21.52
First Citizens BancShares	$12.09 billion	2.59	$11.47 billion	$174.55	12.84

First Citizens BancShares has higher revenue and earnings than Bank of Hawaii. First Citizens BancShares 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.

Profitability

This table compares Bank of Hawaii and First Citizens BancShares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Hawaii	13.76%	11.33%	0.61%
First Citizens BancShares	17.36%	13.63%	1.33%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bank of Hawaii and First Citizens BancShares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Hawaii	2	3	1	0	1.83
First Citizens BancShares	0	6	7	0	2.54

Bank of Hawaii presently has a consensus price target of $71.83, indicating a potential upside of 0.23%. First Citizens BancShares has a consensus price target of $2,290.75, indicating a potential upside of 2.24%. Given First Citizens BancShares’ stronger consensus rating and higher probable upside, analysts clearly believe First Citizens BancShares is more favorable than Bank of Hawaii.

Dividends

Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.9%. First Citizens BancShares pays an annual dividend of $7.80 per share and has a dividend yield of 0.3%. Bank of Hawaii pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Citizens BancShares pays out 4.5% of its earnings in the form of a dividend.

Summary

First Citizens BancShares beats Bank of Hawaii on 11 of the 16 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 First Citizens BancShares

First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts. Its loan product portfolio comprises commercial construction and mortgage; and commercial and industrial leases, as well as small business administration loans. In addition, the company offers consumer loans, such as residential and revolving mortgage, consumer auto, and other consumer loans. Further, it provides wealth management services, including annuities, brokerage services, and third-party mutual funds, as well as investment management and advisory services. The company provides its products and services through its branch network. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.