Head to Head Survey: First Hawaiian (NASDAQ:FHB) versus CB Financial Services (NASDAQ:CBFV)

CB Financial Services (NASDAQ:CBFV) and First Hawaiian (NASDAQ:FHB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Institutional & Insider Ownership

33.1% of CB Financial Services shares are owned by institutional investors. Comparatively, 97.6% of First Hawaiian shares are owned by institutional investors. 9.4% of CB Financial Services shares are owned by insiders. Comparatively, 0.5% of First Hawaiian 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.

Earnings and Valuation

This table compares CB Financial Services and First Hawaiian’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CB Financial Services	$39.89 million	3.18	$22.55 million	$4.40	5.61
First Hawaiian	$790.71 million	3.80	$234.98 million	$1.74	13.49

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

Dividends

CB Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.4%. CB Financial Services pays out 22.7% of its earnings in the form of a dividend. First Hawaiian pays out 59.8% 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 & Volatility

CB Financial Services has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CB Financial Services	0	3	0	0	2.00
First Hawaiian	3	3	0	0	1.50

CB Financial Services presently has a consensus target price of $24.67, indicating a potential downside of 0.01%. First Hawaiian has a consensus target price of $24.67, indicating a potential upside of 5.05%. Given First Hawaiian’s higher possible upside, analysts clearly believe First Hawaiian is more favorable than CB Financial Services.

Profitability

This table compares CB Financial Services and First Hawaiian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CB Financial Services	24.64%	8.79%	0.80%
First Hawaiian	18.83%	8.96%	0.90%

Summary

First Hawaiian beats CB Financial Services on 10 of the 15 factors compared between the two stocks.

About CB Financial Services

CB Financial Services, Inc. operates as the bank holding company for Community Bank that provides various banking products and services for individuals and businesses in southwestern Pennsylvania, West Virginia, and Ohio. The company's primary deposit products include demand deposits, NOW accounts, money market accounts, and savings accounts, as well as time deposit products. Its loan products comprise residential real estate loans, such as one- to four-family mortgage loans, home equity installment loans, and home equity lines of credit; commercial real estate loans that are secured primarily by improved properties, such as retail facilities, office buildings, and other non-residential buildings; construction loans to individuals to finance the construction of residential dwellings, as well as for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses; commercial and industrial loans, and lines of credit; consumer loans consisting of indirect auto loans, secured and unsecured loans, and lines of credit; and other loans. In addition, the company conducts insurance agency activities by offering property and casualty, commercial liability, surety, and other insurance products. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. 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.