Lakeland Financial (NASDAQ:LKFN – Get a rating) and first Hawaiian (NASDAQ: FHB – Get a rating) are both mid-cap financials, but which stock is superior? We’ll compare the two companies based on earnings strength, risk, profitability, valuation, analyst recommendations, dividends, and institutional ownership.
Risk and Volatility
Lakeland Financial has a beta of 0.73, suggesting its stock price is 27% less volatile than the S&P 500. By comparison, First Hawaiian has a beta of 1.09, suggesting its stock price is 9% more volatile than the S&P 500.
This is a summary of current recommendations for Lakeland Financial and First Hawaiian, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Lakeland Financial currently has a consensus target price of $58.91, suggesting a potential downside of 24.09%. First Hawaiian has a consensus target price of $29.50, suggesting a potential upside of 5.39%. Given First Hawaiian’s possible higher upside, analysts clearly believe that First Hawaiian is more favorable than Lakeland Financial.
Lakeland Financial pays an annual dividend of $1.60 per share and has a dividend yield of 2.1%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 3.7%. Lakeland Financial pays 42.8% of its profits as a dividend. First Hawaiian pays 50.7% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Lakeland Financial has increased its dividend for 2 consecutive years.
Insider and Institutional Ownership
81.4% of Lakeland Financial shares are held by institutional investors. 4.0% of the shares of Lakeland Financial are held by insiders of the company. By comparison, 0.6% of First Hawaiian’s stock is held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.
Valuation and benefits
This chart compares revenue, earnings per share (EPS), and valuation of Lakeland Financial and First Hawaiian.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Lakeland Financial||$237.94 million||8.42||$95.73 million||$3.74||20.75|
|First Hawaiian||$734.23 million||4.89||$265.73 million||$2.05||1:65 p.m.|
First Hawaiian has higher revenue and profits than Lakeland Financial. First Hawaiian trades at a lower price-to-earnings ratio than Lakeland Financial, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Lakeland Financial and First Hawaiian.
|Net margins||Return on equity||return on assets|
Lakeland Financial beats First Hawaiian on 11 out of 16 factors compared between the two stocks.
About Lakeland Financial (Get a rating)
Lakeland Financial Corporation operates as a bank holding company for Lake City Bank which provides various banking products and services. The company accepts various deposit products, such as interest-free deposits, interest-bearing checks, savings, money market, NOW and demand deposits. Its lending products include commercial and industrial loans, commercial and multi-family residential real estate, agribusiness and agriculture, 1-4 family consumer mortgages and other consumer loans. The company also offers credit card services to retailers and merchants; corporate cash management, wealth advisory and trust services; retail brokerage services, including various financial and investment products, such as annuities and life insurance; and mobile business banking and online cash management services. It serves the commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services industries. and health care. As of December 31, 2021, the company operated 51 offices in fifteen counties, including 45 offices in northern Indiana and six offices in central Indiana. Lakeland Financial Corporation was founded in 1872 and is headquartered in Warsaw, Indiana.
About the first Hawaiian (Get a rating)
First Hawaiian, Inc. operates as the banking holding company for First Hawaiian Bank which provides a range of consumer and commercial banking services in the United States. It operates through three segments: Retail Banking, Commercial Banking and Treasury and Others. The Company accepts various deposit products, including checking and savings accounts, and other deposit accounts. It also offers residential and commercial mortgages, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans and small business loans and leases, as well as commercial leases and financing for car dealerships. In addition, the company offers personal installments, credit cards, individual investments and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury and merchant processing. It operates a network of 54 branches, including 49 in Hawaii, 3 in Guam and 2 in Saipan. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.
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