First Northwest Bancorp (NASDAQ:FNWB) vs. Bank of Hawaii (NYSE:BOH) Head-To-Head Comparison

First Northwest Bancorp (NASDAQ:FNWB) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Volatility & Risk

First Northwest Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for First Northwest Bancorp and Bank of Hawaii, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northwest Bancorp	0	1	1	0	2.50
Bank of Hawaii	1	3	1	0	2.00

First Northwest Bancorp presently has a consensus target price of $12.75, suggesting a potential upside of 79.58%. Bank of Hawaii has a consensus target price of $75.00, suggesting a potential upside of 9.78%. Given First Northwest Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe First Northwest Bancorp is more favorable than Bank of Hawaii.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Northwest Bancorp	0.32%	0.25%	0.02%
Bank of Hawaii	16.30%	12.67%	0.72%

Dividends

First Northwest Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 3.9%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.1%. First Northwest Bancorp pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of Hawaii pays out 73.5% of its earnings in the form of a dividend. 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.

Institutional & Insider Ownership

66.1% of First Northwest Bancorp shares are held by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are held by institutional investors. 5.5% of First Northwest Bancorp shares are held by company insiders. Comparatively, 2.1% of Bank of Hawaii shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares First Northwest Bancorp and Bank of Hawaii”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northwest Bancorp	$124.95 million	0.54	-$6.61 million	$0.04	177.50
Bank of Hawaii	$1.04 billion	2.62	$149.99 million	$3.81	17.93

Bank of Hawaii has higher revenue and earnings than First Northwest Bancorp. Bank of Hawaii is trading at a lower price-to-earnings ratio than First Northwest Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Bank of Hawaii beats First Northwest Bancorp on 12 of the 16 factors compared between the two stocks.

About First Northwest Bancorp

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States. The company accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit. It also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit. First Northwest Bancorp operates branch offices in Clallam, Jefferson, King, Kitsap, and Whatcom Counties, Washington. First Northwest Bancorp was founded in 1923 and is based in Port Angeles, Washington.

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.