Critical Survey: Bay Banks of Virginia (OTCMKTS:BAYK) and First Hawaiian (NASDAQ:FHB)

First Hawaiian (NASDAQ:FHB) and Bay Banks of Virginia (OTCMKTS:BAYK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for First Hawaiian and Bay Banks of Virginia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	3	3	0	0	1.50
Bay Banks of Virginia	0	0	0	0	N/A

First Hawaiian presently has a consensus price target of $24.67, suggesting a potential upside of 2.52%. Given First Hawaiian’s higher possible upside, research analysts plainly believe First Hawaiian is more favorable than Bay Banks of Virginia.

Valuation and Earnings

This table compares First Hawaiian and Bay Banks of Virginia’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Hawaiian	$790.71 million	3.89	$234.98 million	$1.74	13.83
Bay Banks of Virginia	$55.38 million	2.27	$7.06 million	N/A	N/A

First Hawaiian has higher revenue and earnings than Bay Banks of Virginia.

Profitability

This table compares First Hawaiian and Bay Banks of Virginia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	18.83%	8.96%	0.90%
Bay Banks of Virginia	N/A	N/A	N/A

Insider & Institutional Ownership

97.6% of First Hawaiian shares are held by institutional investors. 0.5% of First Hawaiian shares are held by insiders. Comparatively, 7.6% of Bay Banks of Virginia shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

First Hawaiian beats Bay Banks of Virginia on 8 of the 9 factors compared between the two stocks.

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.

About Bay Banks of Virginia

Bay Banks of Virginia, Inc., through its subsidiaries, provides various banking products and services to businesses, professionals, and consumers in Virginia. The company accepts checking accounts, savings accounts, money market accounts, cash management accounts, certificates of deposit, and individual retirement accounts. Its loan products include commercial and industrial loans, such as small business loans, asset based loans, and other secured and unsecured loans and lines of credit; purchased loans; residential and commercial mortgages; home equity loans; consumer installment loans; and consumer loans comprising automobile and boat financing, home improvement loans, and unsecured personal loans. The company also provides credit cards; and insurance, online banking, telephone banking, mobile banking, analysis checking, cash management deposit, wire, direct deposit payroll, lockbox, positive pay, and remote deposit services, as well as a line of commercial lending options. In addition, it offers management services, including estate planning and settlement, as well as trust administration, investment, and wealth management services; and revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment planning, brokerage services, investment managed accounts, and managed and self-directed rollover individual retirement accounts for personal and corporate trusts. As of March 9, 2020, the company operated 17 banking offices located throughout greater Richmond region, the Northern Neck region, Middlesex County, and the Hampton Roads region. Bay Banks of Virginia, Inc. was founded in 1930 and is headquartered in Richmond, Virginia.