First Bank vs Bank of Hawaii Which Is Superior?

First Bank and Bank of Hawaii are two prominent banking institutions with a strong presence in the financial market. Both companies have established themselves as leaders in the banking industry, offering a wide range of services to their clients. As investors consider their options for potential stock investments, it is important to analyze the performance and growth potential of both First Bank and Bank of Hawaii stocks. By examining key financial metrics and market trends, investors can make informed decisions about where to allocate their capital for maximum returns.

First Bank or Bank of Hawaii?

When comparing First Bank and Bank of Hawaii, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between First Bank and Bank of Hawaii.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. First Bank has a dividend yield of 2.01%, while Bank of Hawaii has a dividend yield of 5.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Bank reports a 5-year dividend growth of 14.87% year and a payout ratio of 14.95%. On the other hand, Bank of Hawaii reports a 5-year dividend growth of 3.65% year and a payout ratio of 86.05%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with First Bank P/E ratio at 9.37 and Bank of Hawaii's P/E ratio at 22.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Bank P/B ratio is 0.94 while Bank of Hawaii's P/B ratio is 1.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Bank has seen a 5-year revenue growth of 1.46%, while Bank of Hawaii's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Bank's ROE at 10.37% and Bank of Hawaii's ROE at 9.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.94 for First Bank and $78.37 for Bank of Hawaii. Over the past year, First Bank's prices ranged from $11.20 to $15.87, with a yearly change of 41.70%. Bank of Hawaii's prices fluctuated between $51.18 and $81.45, with a yearly change of 59.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.