Silvergate Capital (NYSE:SI) & HarborOne Bancorp (NASDAQ:HONE) Head-To-Head Analysis

Silvergate Capital (NYSE:SI) and HarborOne Bancorp (NASDAQ:HONE) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

94.4% of Silvergate Capital shares are held by institutional investors. Comparatively, 65.0% of HarborOne Bancorp shares are held by institutional investors. 1.7% of Silvergate Capital shares are held by company insiders. Comparatively, 4.9% of HarborOne Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Silvergate Capital has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500. Comparatively, HarborOne Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Dividends

Silvergate Capital pays an annual dividend of $2.94 per share and has a dividend yield of 294.2%. HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Silvergate Capital pays out -9.8% of its earnings in the form of a dividend. HarborOne Bancorp pays out 86.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silvergate Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Silvergate Capital and HarborOne Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvergate Capital	-$609.47 million	-0.05	-$937.91 million	($29.96)	-0.03
HarborOne Bancorp	$160.61 million	3.70	$16.08 million	$0.37	35.97

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

Profitability

This table compares Silvergate Capital and HarborOne Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silvergate Capital	45.10%	8.87%	0.81%
HarborOne Bancorp	5.20%	4.59%	0.46%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Silvergate Capital and HarborOne Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvergate Capital	0	0	0	0	N/A
HarborOne Bancorp	0	1	0	0	2.00

HarborOne Bancorp has a consensus price target of $14.00, indicating a potential upside of 5.18%. Given HarborOne Bancorp’s higher probable upside, analysts plainly believe HarborOne Bancorp is more favorable than Silvergate Capital.

About Silvergate Capital

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property. The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.

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.