Reviewing Landmark Bancorp (NASDAQ:LARK) and First Hawaiian (NASDAQ:FHB)
by Doug Wharley · The Cerbat GemFirst Hawaiian (NASDAQ:FHB – Get Free Report) and Landmark Bancorp (NASDAQ:LARK – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
97.6% of First Hawaiian shares are owned by institutional investors. Comparatively, 25.7% of Landmark Bancorp shares are owned by institutional investors. 0.7% of First Hawaiian shares are owned by company insiders. Comparatively, 9.8% of Landmark Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for First Hawaiian and Landmark Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Hawaiian | 2 | 7 | 2 | 0 | 2.00 |
| Landmark Bancorp | 0 | 1 | 1 | 0 | 2.50 |
First Hawaiian currently has a consensus price target of $29.38, suggesting a potential upside of 16.29%. Given First Hawaiian’s higher probable upside, analysts clearly believe First Hawaiian is more favorable than Landmark Bancorp.
Risk & Volatility
First Hawaiian has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
Valuation & Earnings
This table compares First Hawaiian and Landmark Bancorp”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 | 3.53 | $276.27 million | $2.30 | 10.98 |
| Landmark Bancorp | $95.97 million | 1.99 | $18.77 million | $3.29 | 9.53 |
First Hawaiian has higher revenue and earnings than Landmark Bancorp. Landmark Bancorp 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 Landmark Bancorp’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% |
| Landmark Bancorp | 20.56% | 12.49% | 1.25% |
Dividends
First Hawaiian pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. First Hawaiian pays out 45.2% of its earnings in the form of a dividend. Landmark Bancorp pays out 25.5% 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. Landmark Bancorp has raised its dividend for 6 consecutive years.
Summary
First Hawaiian beats Landmark Bancorp on 10 of the 17 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 Landmark Bancorp
Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.