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

Valuation and Earnings

This table compares Oak Valley Bancorp and Bank of Hawaii’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oak Valley Bancorp $44.89 million 3.29 $11.54 million N/A N/A
Bank of Hawaii $719.10 million 4.40 $219.60 million $5.23 14.61

Bank of Hawaii has higher revenue and earnings than Oak Valley Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Oak Valley Bancorp 25.70% 12.13% 1.07%
Bank of Hawaii 30.54% 17.53% 1.28%

Analyst Ratings

This is a summary of current recommendations and price targets for Oak Valley Bancorp and Bank of Hawaii, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oak Valley Bancorp 0 0 0 0 N/A
Bank of Hawaii 1 2 0 0 1.67

Bank of Hawaii has a consensus target price of $84.67, suggesting a potential upside of 10.81%. Given Bank of Hawaii’s higher possible upside, analysts clearly believe Bank of Hawaii is more favorable than Oak Valley Bancorp.

Institutional & Insider Ownership

20.6% of Oak Valley Bancorp shares are held by institutional investors. Comparatively, 75.8% of Bank of Hawaii shares are held by institutional investors. 16.0% of Oak Valley 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, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Oak Valley Bancorp pays an annual dividend of $0.27 per share and has a dividend yield of 1.5%. Bank of Hawaii pays an annual dividend of $2.48 per share and has a dividend yield of 3.2%. Bank of Hawaii pays out 47.4% of its earnings in the form of a dividend. Oak Valley Bancorp has raised its dividend for 3 consecutive years and Bank of Hawaii has raised its dividend for 3 consecutive years.

Volatility & Risk

Oak Valley Bancorp has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Summary

Bank of Hawaii beats Oak Valley Bancorp on 11 of the 13 factors compared between the two stocks.

Oak Valley Bancorp Company Profile

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides banking products and services to individuals and business enterprises in Oakdale, California and surrounding areas. The company accepts various deposits products, such as checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans; commercial business lending and trade finance; and small business administration lending, as well as consumer loans consisting of personal loans, automobile loans, home improvement loans, home mortgage loans, revolving lines of credit, and other loans. In addition, the company provides online banking, remote deposit capture, mobile banking, merchant, night depository, extended hours, wire transfer of funds, and note collection services, as well as automated teller machines. As of December 31, 2017, it operated 16 branch offices and 1 loan production office. Oak Valley Bancorp was founded in 1990 and is headquartered in Oakdale, California.

Bank of Hawaii Company Profile

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides financial products and services in Hawaii, Guam, and other Pacific Islands. It operates through four segments: Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. The Retail Banking segment offers financial products and services to consumers and small businesses. It offers checking, savings, and time deposit accounts; loan and lease products, including residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; and retail insurance products. This segment provides its products and services through 69 branch locations and 382 ATMs in Hawaii and the Pacific Islands, as well as through a customer service center, and online and mobile banking. The Commercial Banking segment's product lines comprise corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. It offers commercial lending and deposit products to middle-market and large companies, and government entities; and commercial real estate mortgages to investors, developers, and builders. This segment also provides international banking and merchant services. The Investment Services and Private Banking segment offers private and international client banking, trust, investment management, and institutional investment advisory services for individuals and families, high-net-worth individuals, corporations, government entities, and foundations. This segment also provides brokerage offering equities, mutual funds, life insurance, and annuity products. The Treasury and Other segment offers corporate asset and liability management services, such as interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.

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