Critical Survey: City Bank (OTCMKTS:CTBK) vs. Bank of Hawaii (NYSE:BOH)

City Bank (OTCMKTS:CTBK) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

City Bank has a beta of -0.22, suggesting that its share price is 122% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares City Bank and Bank of Hawaii”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Bank	N/A	N/A	N/A	N/A	N/A
Bank of Hawaii	$1.07 billion	2.87	$205.90 million	$4.95	15.63

Bank of Hawaii has higher revenue and earnings than City Bank.

Insider & Institutional Ownership

82.2% of Bank of Hawaii shares are held by institutional investors. 37.5% of City Bank shares are held by insiders. Comparatively, 2.0% of Bank of Hawaii shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
City Bank	N/A	N/A	N/A
Bank of Hawaii	20.46%	14.97%	0.92%

Analyst Ratings

This is a breakdown of current recommendations and price targets for City Bank and Bank of Hawaii, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Bank	0	0	0	0	0.00
Bank of Hawaii	0	4	3	0	2.43

Bank of Hawaii has a consensus target price of $85.40, indicating a potential upside of 10.41%. Given Bank of Hawaii’s stronger consensus rating and higher possible upside, analysts clearly believe Bank of Hawaii is more favorable than City Bank.

Summary

Bank of Hawaii beats City Bank on 9 of the 10 factors compared between the two stocks.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

About Bank of Hawaii

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.