U.S. Bancorp (NYSE:USB) vs. Hingham Institution for Savings (NASDAQ:HIFS) Head-To-Head Comparison

Hingham Institution for Savings (NASDAQ:HIFS) and U.S. Bancorp (NYSE:USB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hingham Institution for Savings	25.94%	8.24%	0.88%
U.S. Bancorp	18.49%	13.69%	1.15%

Valuation & Earnings

This table compares Hingham Institution for Savings and U.S. Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hingham Institution for Savings	$236.78 million	2.75	$54.55 million	$30.02	9.97
U.S. Bancorp	$42.86 billion	2.16	$7.57 billion	$5.01	11.84

U.S. Bancorp has higher revenue and earnings than Hingham Institution for Savings. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than U.S. Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hingham Institution for Savings and U.S. Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hingham Institution for Savings	0	0	1	0	3.00
U.S. Bancorp	0	8	16	1	2.72

U.S. Bancorp has a consensus price target of $67.06, suggesting a potential upside of 13.03%. Given U.S. Bancorp’s higher possible upside, analysts plainly believe U.S. Bancorp is more favorable than Hingham Institution for Savings.

Insider and Institutional Ownership

49.3% of Hingham Institution for Savings shares are held by institutional investors. Comparatively, 77.6% of U.S. Bancorp shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Hingham Institution for Savings has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Dividends

Hingham Institution for Savings pays an annual dividend of $2.52 per share and has a dividend yield of 0.8%. U.S. Bancorp pays an annual dividend of $2.08 per share and has a dividend yield of 3.5%. Hingham Institution for Savings pays out 8.4% of its earnings in the form of a dividend. U.S. Bancorp pays out 41.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. U.S. Bancorp has raised its dividend for 14 consecutive years. U.S. Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

U.S. Bancorp beats Hingham Institution for Savings on 13 of the 18 factors compared between the two stocks.

About Hingham Institution for Savings

Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit. The company provides commercial and residential real estate, construction, home equity, commercial, consumer, and mortgage loans. In addition, it offers ATMs, debit cards, and Internet-based banking services. The company offers its services through a network of offices in Boston; Washington, D.C.; and San Francisco Bay Area. Hingham Institution for Savings was incorporated in 1834 and is headquartered in Hingham, Massachusetts.

About U.S. Bancorp

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.