Critical Comparison: Howard Bancorp (HBMD) versus Hingham Institution for Savings (HIFS)

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Howard Bancorp $62.55 million 5.14 $7.20 million $0.79 21.41
Hingham Institution for Savings $82.47 million 5.58 $25.76 million N/A N/A

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

Analyst Ratings

This is a summary of recent ratings and price targets for Howard Bancorp and Hingham Institution for Savings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Bancorp 0 2 2 0 2.50
Hingham Institution for Savings 0 0 0 0 N/A

Howard Bancorp currently has a consensus target price of $20.75, indicating a potential upside of 22.71%. Given Howard Bancorp’s higher probable upside, equities research analysts plainly believe Howard Bancorp is more favorable than Hingham Institution for Savings.

Dividends

Hingham Institution for Savings pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. Howard Bancorp does not pay a dividend. Hingham Institution for Savings has raised its dividend for 2 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Howard Bancorp -5.58% 3.55% 0.45%
Hingham Institution for Savings 33.49% N/A N/A

Institutional and Insider Ownership

52.4% of Howard Bancorp shares are held by institutional investors. Comparatively, 32.1% of Hingham Institution for Savings shares are held by institutional investors. 23.2% of Howard Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Howard Bancorp has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Howard Bancorp Company Profile

Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. The company offers various consumer and business deposit products, including demand deposits, money market accounts, savings accounts, individual retirement accounts, and commercial and retail checking accounts, as well as certificates of deposit. It also commercial loans, such as lines of credit, revolving credit facilities, accounts receivable and inventory financing, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; commercial mortgage loans for owner occupied and investor properties; construction loans; residential mortgage loans; and secured and unsecured consumer loans. In addition, the company offers wire transfer services; automated teller machines and check cards; and safe deposit boxes, as well as credit cards through a third party processor. Further, it provides Internet banking, merchant card, overnight sweep, and remote deposit capture services; and Mobiliti mobile banking, PopMoney, and eStatement products. As of December 31, 2017, the company operated through a network of 14 full service branches located in Maryland. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Ellicott City, Maryland.

Hingham Institution for Savings Company Profile

Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.

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