Comparing Bank Hapoalim (OTCMKTS:BKHYY) & Washington Trust Bancorp (NASDAQ:WASH)

Washington Trust Bancorp (NASDAQ:WASH) and Bank Hapoalim (OTCMKTS:BKHYY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Dividends

Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 5.6%. Bank Hapoalim pays an annual dividend of $3.75 per share and has a dividend yield of 2.8%. Washington Trust Bancorp pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank Hapoalim pays out 33.1% of its earnings in the form of a dividend.

Institutional and Insider Ownership

65.8% of Washington Trust Bancorp shares are owned by institutional investors. 1.3% of Washington Trust Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Washington Trust Bancorp and Bank Hapoalim, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Washington Trust Bancorp	0	3	1	0	2.25
Bank Hapoalim	0	1	0	0	2.00

Washington Trust Bancorp currently has a consensus price target of $35.50, indicating a potential downside of 10.94%. Given Washington Trust Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Washington Trust Bancorp is more favorable than Bank Hapoalim.

Profitability

This table compares Washington Trust Bancorp and Bank Hapoalim’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Washington Trust Bancorp	14.50%	10.18%	0.84%
Bank Hapoalim	22.88%	14.65%	1.22%

Valuation & Earnings

This table compares Washington Trust Bancorp and Bank Hapoalim”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Washington Trust Bancorp	$393.95 million	1.93	$52.24 million	$2.88	13.84
Bank Hapoalim	$12.56 billion	2.80	$2.84 billion	$11.32	11.87

Bank Hapoalim has higher revenue and earnings than Washington Trust Bancorp. Bank Hapoalim is trading at a lower price-to-earnings ratio than Washington Trust Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Washington Trust Bancorp has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Bank Hapoalim has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Summary

Bank Hapoalim beats Washington Trust Bancorp on 9 of the 16 factors compared between the two stocks.

About Washington Trust Bancorp

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.