Head-To-Head Contrast: Hingham Institution for Savings (NASDAQ:HIFS) and U.S. Bancorp (NYSE:USB)
by Doug Wharley · The Cerbat GemU.S. Bancorp (NYSE:USB – Get Free Report) and Hingham Institution for Savings (NASDAQ:HIFS – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Risk and Volatility
U.S. Bancorp has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Hingham Institution for Savings has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for U.S. Bancorp and Hingham Institution for Savings, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| U.S. Bancorp | 0 | 8 | 16 | 1 | 2.72 |
| Hingham Institution for Savings | 0 | 0 | 1 | 0 | 3.00 |
U.S. Bancorp presently has a consensus price target of $67.40, suggesting a potential upside of 17.20%. Given U.S. Bancorp’s higher probable upside, equities analysts clearly believe U.S. Bancorp is more favorable than Hingham Institution for Savings.
Institutional & Insider Ownership
77.6% of U.S. Bancorp shares are held by institutional investors. Comparatively, 49.3% of Hingham Institution for Savings shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares U.S. Bancorp and Hingham Institution for Savings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| U.S. Bancorp | 18.49% | 13.69% | 1.15% |
| Hingham Institution for Savings | 25.94% | 8.24% | 0.88% |
Dividends
U.S. Bancorp pays an annual dividend of $2.16 per share and has a dividend yield of 3.8%. Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.9%. U.S. Bancorp pays out 43.1% of its earnings in the form of a dividend. Hingham Institution for Savings pays out 8.4% 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. U.S. Bancorp has increased its dividend for 14 consecutive years. U.S. Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares U.S. Bancorp and Hingham Institution for Savings”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| U.S. Bancorp | $42.86 billion | 2.09 | $7.57 billion | $5.01 | 11.48 |
| Hingham Institution for Savings | $236.78 million | 2.65 | $54.55 million | $30.02 | 9.59 |
U.S. Bancorp has higher revenue and earnings than Hingham Institution for Savings. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than U.S. Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
U.S. Bancorp beats Hingham Institution for Savings on 13 of the 18 factors compared between the two stocks.
About U.S. Bancorp
U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.
About Hingham Institution for Savings
Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.