Bank7 (NASDAQ:BSVN) versus Bank of Hawaii (NASDAQ:BOH) Critical Contrast

Bank7 (NASDAQ:BSVN) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

Bank of Hawaii pays an annual dividend of $2.60 per share and has a dividend yield of 3.1%. Bank7 does not pay a dividend. Bank of Hawaii pays out 49.7% of its earnings in the form of a dividend. Bank of Hawaii has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

33.4% of Bank7 shares are held by institutional investors. Comparatively, 75.4% of Bank of Hawaii shares are held by institutional investors. 63.4% of Bank7 shares are held by insiders. Comparatively, 2.1% of Bank of Hawaii shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Bank7 and Bank of Hawaii’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank7 $48.13 million 3.69 $25.00 million $2.44 7.14
Bank of Hawaii $719.10 million 4.68 $219.60 million $5.23 15.85

Bank of Hawaii has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bank7 and Bank of Hawaii’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank7 44.09% 25.90% 2.97%
Bank of Hawaii 30.23% 17.85% 1.31%

Analyst Ratings

This is a summary of current recommendations and price targets for Bank7 and Bank of Hawaii, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank7 0 0 3 0 3.00
Bank of Hawaii 1 2 0 0 1.67

Bank7 currently has a consensus target price of $23.00, suggesting a potential upside of 31.96%. Bank of Hawaii has a consensus target price of $82.33, suggesting a potential downside of 0.70%. Given Bank7’s stronger consensus rating and higher probable upside, research analysts plainly believe Bank7 is more favorable than Bank of Hawaii.

Bank7 Company Profile

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers in Oklahoma, Kansas, and Texas. It accepts demand, savings, checking, money market, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company also provides commercial real estate, hospitality, energy, and commercial and industrial loans; and consumer loans, such as secured and unsecured term loans and home improvement loans; and residential real estate loans, mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as ATM services. It operates through seven branches in Oklahoma, Texas, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 2004 and is headquartered in Oklahoma City, Oklahoma.

Bank of Hawaii Company Profile

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides financial products and services in Hawaii, Guam, and other Pacific Islands. It operates through four segments: Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. The Retail Banking segment offers financial products and services to consumers and small businesses. It offers checking, savings, and time deposit accounts; loan and lease products, including residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; and retail insurance products. This segment provides its products and services through 69 branch locations and 382 ATMs in Hawaii and the Pacific Islands, as well as through a customer service center, and online and mobile banking. The Commercial Banking segment's product lines comprise corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. It offers commercial lending and deposit products to middle-market and large companies, and government entities; and commercial real estate mortgages to investors, developers, and builders. This segment also provides international banking and merchant services. The Investment Services and Private Banking segment offers private and international client banking, trust, investment management, and institutional investment advisory services for individuals and families, high-net-worth individuals, corporations, government entities, and foundations. This segment also provides brokerage offering equities, mutual funds, life insurance, and annuity products. The Treasury and Other segment offers corporate asset and liability management services, such as 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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