Head to Head Review: First Hawaiian (FHB) & Tristate Capital (TSC)

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First Hawaiian (NASDAQ:FHB) and Tristate Capital (NASDAQ:TSC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares First Hawaiian and Tristate Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Hawaiian $776.37 million 4.21 $183.68 million $1.65 14.68
Tristate Capital $181.26 million 3.28 $37.98 million $1.24 16.60

First Hawaiian has higher revenue and earnings than Tristate Capital. First Hawaiian is trading at a lower price-to-earnings ratio than Tristate Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

First Hawaiian pays an annual dividend of $0.96 per share and has a dividend yield of 4.0%. Tristate Capital does not pay a dividend. First Hawaiian pays out 58.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for First Hawaiian and Tristate Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Hawaiian 0 4 4 0 2.50
Tristate Capital 0 1 3 0 2.75

First Hawaiian currently has a consensus target price of $31.00, indicating a potential upside of 27.94%. Tristate Capital has a consensus target price of $30.33, indicating a potential upside of 47.32%. Given Tristate Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Tristate Capital is more favorable than First Hawaiian.

Profitability

This table compares First Hawaiian and Tristate Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Hawaiian 26.14% 10.79% 1.32%
Tristate Capital 22.52% 11.43% 0.91%

Insider & Institutional Ownership

78.6% of First Hawaiian shares are owned by institutional investors. Comparatively, 72.5% of Tristate Capital shares are owned by institutional investors. 0.1% of First Hawaiian shares are owned by insiders. Comparatively, 23.7% of Tristate Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

First Hawaiian has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Tristate Capital has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Summary

First Hawaiian beats Tristate Capital on 10 of the 16 factors compared between the two stocks.

First Hawaiian Company Profile

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through Retail Banking and Commercial Banking segments. The company accepts various deposit products, such as checking and savings accounts, and time deposit accounts. Its lending activities include residential and commercial mortgage and real estate loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, commercial lease financing, and auto dealer financing. The company also offers credit cards; and individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, merchant processing, and retirement planning services. As of December 31, 2017, it operated 62 branches Oahu, Maui, Hawaii, Kauai, Guam, and Saipan. First Hawaiian, Inc. was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. The company was founded in 1858 and is headquartered in Honolulu, Hawaii. First Hawaiian, Inc. is a subsidiary of BancWest Corporation.

Tristate Capital Company Profile

TriState Capital Holdings, Inc. operates as the bank holding company for TriState Capital Bank that provides various commercial and private banking services to middle-market businesses and high-net-worth individuals in the United States. The company operates in two segments, Bank and Investment Management. Its deposit products include checking accounts, money market deposit accounts, and certificates of deposit, as well as promontory's certificate of deposit account registry service and insured cash sweep services. The company also provides loans that are secured by cash or marketable securities, commercial and industrial loans, commercial real estate loans, personal loans, asset-based loans, acquisition financing, and letters of credit. In addition, it offers cash and treasury management services, such as online balance reporting, online bill payment, remote deposit, liquidity, wire and ACH, foreign exchange, and controlled disbursement services; and capital market services comprising interest rate swaps and investment management products. Further, the company provides equity and fixed income advisory and sub-advisory services to third party mutual funds and series trust mutual funds, as well as to separately managed accounts for clients, including ultra-high-net-worth and institutional clients, corporations, ERISA plans, Taft-Hartley funds, municipalities, endowments, and foundations. The company offers its products and services through its main office located in Pittsburgh, Pennsylvania, as well as through its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. TriState Capital Holdings, Inc. was founded in 2007 and is headquartered in Pittsburgh, Pennsylvania.

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