M&T Bank (NASDAQ: HIFS) and Hingham Institution for Savings (NASDAQ:HIFS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Risk & Volatility

M&T Bank has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

79.9% of M&T Bank shares are held by institutional investors. Comparatively, 31.8% of Hingham Institution for Savings shares are held by institutional investors. 0.5% of M&T Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares M&T Bank and Hingham Institution for Savings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
M&T Bank 24.57% 11.80% 1.46%
Hingham Institution for Savings 33.49% N/A N/A

Dividends

M&T Bank pays an annual dividend of $3.20 per share and has a dividend yield of 1.8%. Hingham Institution for Savings pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. M&T Bank pays out 34.2% of its earnings in the form of a dividend. Hingham Institution for Savings has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for M&T Bank and Hingham Institution for Savings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
M&T Bank 1 9 5 0 2.27
Hingham Institution for Savings 0 0 0 0 N/A

M&T Bank presently has a consensus target price of $178.14, suggesting a potential upside of 1.48%. Given M&T Bank’s higher possible upside, equities research analysts clearly believe M&T Bank is more favorable than Hingham Institution for Savings.

Valuation and Earnings

This table compares M&T Bank and Hingham Institution for Savings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
M&T Bank $6.02 billion 4.19 $1.41 billion $9.35 18.77
Hingham Institution for Savings $82.47 million 5.67 $25.76 million N/A N/A

M&T Bank has higher revenue and earnings than Hingham Institution for Savings.

Summary

M&T Bank beats Hingham Institution for Savings on 11 of the 15 factors compared between the two stocks.

About M&T Bank

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide retail and commercial banking services. The company's Business Banking segment offers deposit, lending, cash management, and other financial services to small businesses and professionals. Its Commercial Banking segment provides commercial lending and leasing, letters of credit, deposit products, and cash management services to middle-market and large commercial customers. The company's Commercial Real Estate segment offers credit services, which are secured by various multifamily residential and commercial real estates; and deposit services. Its Discretionary Portfolio segment provides securities, residential real estate loans, and other assets; short-term and long-term borrowed funds; brokered deposits; and the Cayman Islands branch deposits, as well as foreign exchange services. The company's Residential Mortgage Banking segment originates and services residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities. Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational vehicle loans, home equity loans and lines of credit, and credit cards; investment products, including mutual funds and annuities; and other services. The company also provides trust and wealth management; fiduciary and custodial; investment management and advisory; and insurance agency services. It offers its services through banking offices, business banking centers, telephone and Internet banking, and automated teller machines. As of December 31, 2017, the company had 780 banking offices in the United States, a commercial banking office in Canada, and an office in the Cayman Islands. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

About Hingham Institution for Savings

Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.

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