Financial Contrast: Hope Bancorp (NASDAQ:HOPE) vs. ETFs (NYSE:FNB)


Hope Bancorp (NASDAQ:HOPE – Get Rating) and FNB (NYSE:FNB – Get Rating) are both finance companies, but which is the best investment? We will compare the two companies based on their risk strength, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Profitability

This table compares the net margins, return on equity and return on assets of Hope Bancorp and ETFs.

Net margins Return on equity return on assets
Hope Bancorp 34.35% 10.63% 1.23%
ETFs 27.34% 8.06% 1.03%

Volatility and risk

Hope Bancorp has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, ETF has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

85.2% of Hope Bancorp shares are held by institutional investors. Comparatively, 71.3% of the ETF’s shares are held by institutional investors. 5.1% of the shares of Hope Bancorp are held by insiders of the company. By comparison, 0.9% of the ETF’s shares are held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Valuation and benefits

This table compares the gross earnings, earnings per share (EPS), and valuation of Hope Bancorp and ETFs.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hope Bancorp $610.13 million 2.86 $204.57 million $1.81 7.99
ETFs $1.34 billion 3.05 $405.00 million $1.10 10.53

ETF has higher earnings and earnings than Hope Bancorp. Hope Bancorp trades at a lower price-to-earnings ratio than ETF, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Hope Bancorp and ETFs, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hope Bancorp 0 1 0 0 2.00
ETFs 0 1 4 0 2.80

Hope Bancorp currently has a consensus price target of $16.00, suggesting a potential upside of 10.57%. ETF has a consensus price target of $13.49, suggesting a potential upside of 16.53%. Given the stronger ETF consensus rating and higher possible upside, analysts clearly think ETFs are more favorable than Hope Bancorp.

Dividends

Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. ETF pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. Hope Bancorp pays 30.9% of its profits as a dividend. The ETF pays out 43.6% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.

About Hope Bancorp

(Get an evaluation)

Hope Bancorp, Inc. operates as a bank holding company for Bank of Hope which provides banking services to small and medium businesses and individuals in the United States. The company accepts personal and business checks, money market, savings, term deposits and individual retirement accounts. Its lending products include commercial loans to businesses for various purposes, such as working capital, purchase of inventory, refinancing of debt, business acquisitions and other business-related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgages, home equity, auto loans, credit cards, and personal loans. The Company also offers trade finance services, including issuing and negotiating letters of credit, as well as managing documentary collections; warehouse lines of credit to mortgage originators; and commercial equipment lease financing. Additionally, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking; debit card services; exchange services, safe deposit boxes and other usual banking services; online banking services; and ATM services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama; SBA loan origination offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.

About ETF

(Get an evaluation)

ETF LogoFNB Corporation, a financial holding company, provides a range of financial services primarily to consumers, businesses, governments and small and medium-sized businesses. The Company operates through three segments: Community Banking, Wealth Management and Insurance. It offers commercial banking solutions, including corporate and small business banking, real estate finance, corporate credit, capital market and lease finance services. The Company also provides consumer banking products and services, such as deposit products, mortgage and consumer loan services, as well as mobile and online banking; and wealth management services including personal and corporate trust services including the administration of estates of deceased persons and trusts; securities brokerage and investment advisory services, mutual funds and annuities; and commercial and personal insurance and reinsurance products, as well as mezzanine financing options for small and medium-sized businesses. As of December 31, 2021, it operated 334 banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, DC and Virginia. FNB Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.



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