Head-to-head balance sheet: Unity Bancorp (NASDAQ:UNTY) and Bank of Hawaii (NYSE:BOH)


Unity Bancorp (NASDAQ:UNTYGet a rating) and Bank of Hawaii (NYSE: BOHGet a rating) are both finance companies, but which is the better investment? We will compare the two companies based on their risk strength, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

49.7% of Unity Bancorp shares are held by institutional investors. By comparison, 71.6% of Bank of Hawaii’s shares are held by institutional investors. 32.4% of Unity Bancorp shares are held by insiders. By comparison, 2.1% of Bank of Hawaii shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of Unity Bancorp and Bank of Hawaii.

Net margins Return on equity return on assets
Bancorp unit 38.26% 18.63% 1.83%
Bank of Hawaii 35.44% 17.99% 1.09%

Valuation and benefits

This table compares Unity Bancorp and Bank of Hawaii’s earnings, earnings per share (EPS), and valuation.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bancorp unit $96.83 million 3.12 $36.12 million $3.47 8.31
Bank of Hawaii $698.07 million 4:30 $253.37 million $6.07 12:25 p.m.

Bank of Hawaii has higher revenue and profit than Unity Bancorp. Unity Bancorp trades at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.

Dividends

Unity Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.8%. Unity Bancorp pays 11.5% of its profits as a dividend. Bank of Hawaii pays 46.1% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Unity Bancorp increased its dividend for 1 consecutive year and Bank of Hawaii increased its dividend for 1 consecutive year.

Risk and Volatility

Unity Bancorp has a beta of 1.17, indicating its stock price is 17% more volatile than the S&P 500. In comparison, Bank of Hawaii has a beta of 1.15, indicating its stock price is 15 % more volatile than the S&P 500.

Analyst Notes

This is a summary of recent recommendations and price targets for Unity Bancorp and Bank of Hawaii, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bancorp unit 0 0 1 0 3.00
Bank of Hawaii 0 1 0 0 2.00

Unity Bancorp currently has a consensus price target of $33.00, indicating a potential upside of 14.38%. Bank of Hawaii has a consensus price target of $84.00, indicating a potential upside of 12.99%. Given Unity Bancorp’s higher consensus rating and higher possible upside, equity analysts clearly believe that Unity Bancorp is more favorable than Bank of Hawaii.

Summary

Unity Bancorp beats Bank of Hawaii on 9 out of 16 factors compared between the two stocks.

Unity Bancorp Company Profile (Get a rating)

Unity Bancorp, Inc. operates as a holding company for Unity Bank which provides commercial and retail banking products and services to individuals, small and medium enterprises and professional communities. The company offers personal and business checking accounts, term deposits, money market accounts and regular savings accounts, as well as interest-free and interest-bearing demand deposits. It also provides small business administration loans; business loans; and residential and consumer mortgages, including residential real estate, home equity lines and loans, and home building lines, as well as personal loans. the company offered its services via the Internet and nineteen branches located in Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, as well as Northampton County, Pennsylvania. Unity Bancorp, Inc. was incorporated in 1991 and is based in Clinton, New Jersey.

Bank of Hawaii Corporate Profile (Get a rating)

Bank of Hawaii logoBank of Hawaii Corporation operates as a bank holding company for Bank of Hawaii which provides various financial products and services in Hawaii, Guam and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking and Treasury and Others. The Consumer Banking segment offers checking, savings and term deposit accounts; residential mortgages, home equity lines of credit, auto loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; banking, investment, credit and trust services to individuals and families, and high net worth individuals; investment management; institutional investment advisory services to corporations, government entities and foundations; and brokerage offerings, including stocks, mutual funds, life insurance and annuity products. This segment operates 54 branches and 307 ATMs in Hawaii and the Pacific Islands, as well as a customer service center, as well as through online and mobile banking. The Business Banking segment offers business banking, commercial real estate lending, commercial lease financing, automobile dealership financing and deposit products. It offers commercial loan and deposit products to medium and large businesses and government entities; commercial real estate mortgages to investors, developers and builders; and international banking and merchant services. The Treasury and Others segment provides enterprise asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.



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