Comparing BEO Bancorp (OTCMKTS:BEOB) & Bank of Hawaii (NYSE:BOH)

BEO Bancorp (OTCMKTS:BEOB) 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 earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BEO Bancorp	N/A	16.83%	1.69%
Bank of Hawaii	20.46%	14.97%	0.92%

Valuation and Earnings

This table compares BEO Bancorp and Bank of Hawaii”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BEO Bancorp	$59.32 million	2.20	$16.19 million	$13.26	8.21
Bank of Hawaii	$1.07 billion	2.88	$205.90 million	$4.95	15.66

Bank of Hawaii has higher revenue and earnings than BEO Bancorp. BEO Bancorp 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.

Institutional and Insider Ownership

82.2% of Bank of Hawaii shares are held by institutional investors. 2.0% of Bank of Hawaii shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

BEO Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 1.8%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 3.6%. BEO Bancorp pays out 15.1% of its earnings in the form of a dividend. Bank of Hawaii pays out 56.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of Hawaii has increased its dividend for 1 consecutive years. Bank of Hawaii is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for BEO Bancorp and Bank of Hawaii, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BEO Bancorp	0	0	0	0	0.00
Bank of Hawaii	0	4	3	0	2.43

Bank of Hawaii has a consensus target price of $85.40, suggesting a potential upside of 10.17%. Given Bank of Hawaii’s stronger consensus rating and higher probable upside, analysts clearly believe Bank of Hawaii is more favorable than BEO Bancorp.

Volatility and Risk

BEO Bancorp has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Summary

Bank of Hawaii beats BEO Bancorp on 13 of the 17 factors compared between the two stocks.

About BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.

About Bank of Hawaii

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that 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 Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate 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.