Financial Review: Hanmi Financial (HAFC) and Its Rivals

Hanmi Financial (NASDAQ:HAFC) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Hanmi Financial to related companies based on the strength of its dividends, earnings, profitability, risk, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Hanmi Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanmi Financial	N/A	N/A	N/A
Hanmi Financial Competitors	3.80%	5.40%	0.17%

Risk & Volatility

Hanmi Financial has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Hanmi Financial’s rivals have a beta of 0.68, meaning that their average stock price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hanmi Financial and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hanmi Financial	$286.08 million	N/A	10.91
Hanmi Financial Competitors	$6.29 billion	$4.08 billion	18.98

Hanmi Financial’s rivals have higher revenue and earnings than Hanmi Financial. Hanmi Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

88.7% of Hanmi Financial shares are held by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are held by institutional investors. 2.1% of Hanmi Financial shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Hanmi Financial and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	4	2	0	2.33
Hanmi Financial Competitors	7448	30097	27641	1443	2.35

Hanmi Financial presently has a consensus target price of $33.00, indicating a potential upside of 1.82%. As a group, “Banks” companies have a potential upside of 15.06%. Given Hanmi Financial’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Hanmi Financial has less favorable growth aspects than its rivals.

Dividends

Hanmi Financial pays an annual dividend of $1.12 per share and has a dividend yield of 3.5%. Hanmi Financial pays out 37.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 11.6% and pay out 29.2% of their earnings in the form of a dividend. Hanmi Financial has raised its dividend for 1 consecutive years. Hanmi Financial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Hanmi Financial rivals beat Hanmi Financial on 12 of the 14 factors compared.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.