SVB Financial Group (NASDAQ:SIVBQ – Get Free Report) and First Hawaiian (NASDAQ:FHB – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Institutional and Insider Ownership
9.6% of SVB Financial Group shares are held by institutional investors. Comparatively, 97.6% of First Hawaiian shares are held by institutional investors. 0.6% of SVB Financial Group shares are held by company insiders. Comparatively, 0.5% of First Hawaiian 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 SVB Financial Group and First Hawaiian’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SVB Financial Group | $7.40 billion | 0.00 | $1.67 billion | $25.35 | 0.00 |
| First Hawaiian | $842.74 million | 2.67 | $265.68 million | $2.17 | 8.14 |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for SVB Financial Group and First Hawaiian, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SVB Financial Group | 0 | 0 | 0 | 0 | N/A |
| First Hawaiian | 1 | 3 | 0 | 0 | 1.75 |
First Hawaiian has a consensus target price of $22.00, indicating a potential upside of 24.58%. Given First Hawaiian’s higher possible upside, analysts clearly believe First Hawaiian is more favorable than SVB Financial Group.
Risk & Volatility
SVB Financial Group has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, First Hawaiian has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
Profitability
This table compares SVB Financial Group and First Hawaiian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SVB Financial Group | N/A | N/A | N/A |
| First Hawaiian | 27.51% | 12.14% | 1.12% |
Summary
First Hawaiian beats SVB Financial Group on 7 of the 12 factors compared between the two stocks.
About SVB Financial Group
SVB Financial Group, a diversified financial services company, offers various banking and financial products and services. It operates through four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. The Silicon Valley Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance, and other financial products and services. This segment also offers traditional term, growth capital term, and equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue and acquisition finance facilities, mezzanine lending, corporate working capital facilities, and credit card programs; treasury management products and services; business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts; receivables services, which include merchant services, remote capture, lockbox, and fraud control services; wire transfer and automated clearing house payment services; business bill pay, credit and debit cards, account analysis, and disbursement services. In addition, it offers foreign exchange and trade finance products and services; letters of credit; and investment services and solutions. The SVB Private segment offers mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit, and other secured and unsecured lending products; planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services; and real estate secured loans. The SVB Capital segment provides venture capital investment services. The SVB Securities segment provides investment banking services; products and services, including capital raising, merger and acquisition advisory, equity research, and sales and trading. The company was founded in 1983 and is headquartered in Santa Clara, California. On March 17, 2023, SVB Financial Group, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
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 through three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company accepts various deposit products, include checking and savings 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, and small business loans and leases, as well as commercial lease and auto dealer financing. In addition, the company offers personal installment, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, commercial credit cards, 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.
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