First Bank vs First Hawaiian Which Should You Buy?

First Bank and First Hawaiian are two prominent financial institutions that offer stock options for investment. First Bank, headquartered in the United States, has a strong presence in the banking sector with a diverse portfolio of services. On the other hand, First Hawaiian, based in Hawaii, caters to a regional market with a focus on personalized customer service. Both stocks have shown resilience and growth potential in the market, making them attractive options for investors seeking stability and long-term returns.

First Bank or First Hawaiian?

When comparing First Bank and First Hawaiian, 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 First Hawaiian.

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 1.64%, while First Hawaiian has a dividend yield of 3.84%. 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 14.99%. On the other hand, First Hawaiian reports a 5-year dividend growth of 1.61% year and a payout ratio of 59.00%.

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 9.17 and First Hawaiian's P/E ratio at 15.37. 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 0.92 while First Hawaiian's P/B ratio is 1.31.

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 0.36%, while First Hawaiian's is 0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Bank's ROE at 10.37% and First Hawaiian's ROE at 8.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.56 for First Bank and $26.76 for First Hawaiian. Over the past year, First Bank's prices ranged from $11.20 to $15.87, with a yearly change of 41.70%. First Hawaiian's prices fluctuated between $19.48 and $28.80, with a yearly change of 47.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.