Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) vs. First Hawaiian (NASDAQ:FHB) Head-To-Head Contrast

First Hawaiian (NASDAQ:FHB) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility & Risk

First Hawaiian has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Dividends

First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.2%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 7.6%. First Hawaiian pays out 45.2% of its earnings in the form of a dividend. Svenska Handelsbanken Ab Publ pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares First Hawaiian and Svenska Handelsbanken Ab Publ”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Hawaiian	$870.02 million	3.49	$276.27 million	$2.30	10.85
Svenska Handelsbanken Ab Publ	$21.75 billion	1.39	$2.42 billion	$0.71	10.77

Svenska Handelsbanken Ab Publ has higher revenue and earnings than First Hawaiian. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than First Hawaiian, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First Hawaiian and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Hawaiian	24.41%	10.27%	1.19%
Svenska Handelsbanken Ab Publ	17.75%	14.30%	0.72%

Analyst Recommendations

This is a summary of recent recommendations and price targets for First Hawaiian and Svenska Handelsbanken Ab Publ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Hawaiian	2	7	2	0	2.00
Svenska Handelsbanken Ab Publ	3	1	1	0	1.60

First Hawaiian presently has a consensus price target of $29.00, indicating a potential upside of 16.23%. Given First Hawaiian’s stronger consensus rating and higher probable upside, equities research analysts clearly believe First Hawaiian is more favorable than Svenska Handelsbanken Ab Publ.

Institutional and Insider Ownership

97.6% of First Hawaiian shares are held by institutional investors. 0.7% of First Hawaiian shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

First Hawaiian beats Svenska Handelsbanken Ab Publ on 12 of the 16 factors compared between the two stocks.

About First Hawaiian

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking products and services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company offers various deposit products, including checking, savings, and time deposit accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans, small business loans and leases, and construction lending, as well as commercial lease and auto dealer financing. In addition, the company offers wealth management, personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, investment management, retirement planning, and merchant processing services, as well as consumer and commercial credit cards. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.