Analyzing First Hawaiian (NASDAQ:FHB) and City Bank (OTCMKTS:CTBK)

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

Earnings & Valuation

This table compares City Bank and First Hawaiian”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Bank	N/A	N/A	N/A	N/A	N/A
First Hawaiian	$847.43 million	3.48	$276.27 million	$2.20	10.92

First Hawaiian has higher revenue and earnings than City Bank.

Institutional and Insider Ownership

97.6% of First Hawaiian shares are held by institutional investors. 37.5% of City Bank shares are held by company insiders. Comparatively, 0.6% of First Hawaiian shares are held 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 current recommendations for City Bank and First Hawaiian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Bank	0	0	0	0	0.00
First Hawaiian	3	5	1	0	1.78

First Hawaiian has a consensus price target of $27.50, suggesting a potential upside of 14.49%. Given First Hawaiian’s stronger consensus rating and higher probable upside, analysts clearly believe First Hawaiian is more favorable than City Bank.

Profitability

This table compares City Bank and First Hawaiian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Bank	N/A	N/A	N/A
First Hawaiian	23.65%	10.19%	1.16%

Summary

First Hawaiian beats City Bank on 8 of the 9 factors compared between the two stocks.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

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.