Head-To-Head Survey: Central Pacific Financial (NYSE:CPF) vs. HarborOne Bancorp (NASDAQ:HONE)

HarborOne Bancorp (NASDAQ:HONE) and Central Pacific Financial (NYSE:CPF) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares HarborOne Bancorp and Central Pacific Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HarborOne Bancorp	8.61%	4.63%	0.46%
Central Pacific Financial	15.49%	12.03%	0.85%

Analyst Recommendations

This is a breakdown of current ratings and price targets for HarborOne Bancorp and Central Pacific Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HarborOne Bancorp	0	1	0	0	2.00
Central Pacific Financial	0	0	0	0	0.00

HarborOne Bancorp presently has a consensus price target of $13.00, suggesting a potential upside of 21.27%. Given HarborOne Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe HarborOne Bancorp is more favorable than Central Pacific Financial.

Insider & Institutional Ownership

65.0% of HarborOne Bancorp shares are held by institutional investors. Comparatively, 88.4% of Central Pacific Financial shares are held by institutional investors. 4.9% of HarborOne Bancorp shares are held by company insiders. Comparatively, 2.7% of Central Pacific Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HarborOne Bancorp and Central Pacific Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HarborOne Bancorp	$167.94 million	2.78	$27.41 million	$0.66	16.24
Central Pacific Financial	$246.11 million	2.99	$53.41 million	$1.97	13.78

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

Dividends

HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 3.0%. Central Pacific Financial pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. HarborOne Bancorp pays out 48.5% of its earnings in the form of a dividend. Central Pacific Financial pays out 54.8% 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.

Risk and Volatility

HarborOne Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Central Pacific Financial has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Summary

Central Pacific Financial beats HarborOne Bancorp on 10 of the 15 factors compared between the two stocks.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.

About Central Pacific Financial

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.