Head-To-Head Contrast: Hingham Institution for Savings (NASDAQ:HIFS) vs. FS Bancorp (NASDAQ:FSBW)

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

Insider & Institutional Ownership

31.3% of Hingham Institution for Savings shares are owned by institutional investors. Comparatively, 56.4% of FS Bancorp shares are owned by institutional investors. 8.6% of FS Bancorp shares are owned 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.

Risk and Volatility

Hingham Institution for Savings has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, FS Bancorp has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hingham Institution for Savings and FS Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hingham Institution for Savings $92.43 million 4.59 $30.40 million N/A N/A
FS Bancorp $89.18 million 2.56 $24.35 million $4.67 10.90

Hingham Institution for Savings has higher revenue and earnings than FS Bancorp.

Analyst Ratings

This is a breakdown of current ratings for Hingham Institution for Savings and FS Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hingham Institution for Savings 0 0 0 0 N/A
FS Bancorp 0 0 1 0 3.00

FS Bancorp has a consensus target price of $60.00, indicating a potential upside of 17.90%. Given FS Bancorp’s higher probable upside, analysts clearly believe FS Bancorp is more favorable than Hingham Institution for Savings.

Profitability

This table compares Hingham Institution for Savings and FS Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hingham Institution for Savings 32.18% 15.35% 1.35%
FS Bancorp 25.72% 12.15% 1.37%

Dividends

Hingham Institution for Savings pays an annual dividend of $1.52 per share and has a dividend yield of 0.8%. FS Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. FS Bancorp pays out 12.8% of its earnings in the form of a dividend. Hingham Institution for Savings has raised its dividend for 3 consecutive years and FS Bancorp has raised its dividend for 5 consecutive years. FS Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

FS Bancorp beats Hingham Institution for Savings on 8 of the 15 factors compared between the two stocks.

Hingham Institution for Savings Company Profile

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. The company's deposit products include savings, demand, regular, checking, negotiable order of withdrawal, and money market accounts, as well as certificates of deposit. Its loan portfolio comprises commercial real estate, construction, residential real estate, home equity, commercial, and consumer loans. The company also provides ATM, and telephone and Internet banking services. It serves its customers through a network of 11 offices in Boston and southeastern Massachusetts. The company was founded in 1834 and is headquartered in Hingham, Massachusetts.

FS Bancorp Company Profile

FS Bancorp, Inc. operates as a bank holding company for 1st Security Bank of Washington that provides banking and financial services to local families, local and regional businesses, and industry niches. The company operates in two segments, Commercial and Consumer Banking; and Home Lending. It offers various deposit instruments, including checking accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company provides one-to-four-family residential first mortgages, second mortgage/home equity loan products, non-mortgage commercial business loans, commercial real estate loans, and construction and development loans, as well as consumer loans, which primarily include personal lines of credit, automobile, direct home improvement, loans on deposit, and recreational loans. As of December 31, 2018, it operated 21 full-service branches and 8 home loan production offices in various suburban communities in the greater Puget Sound area, including Snohomish, King, Pierce, Jefferson, Kitsap, Clallam, Grays Harbor, Thurston, and Lewis counties; and 1 loan production office in the market area of the Tri-Cities. The company was founded in 1936 and is based in Mountlake Terrace, Washington.

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