TriCo Bancshares (NASDAQ:TCBK) versus Hanmi Financial (NASDAQ:HAFC) Head-To-Head Comparison

Hanmi Financial (NASDAQ:HAFC) and TriCo Bancshares (NASDAQ:TCBK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional & Insider Ownership

88.7% of Hanmi Financial shares are held by institutional investors. Comparatively, 59.1% of TriCo Bancshares shares are held by institutional investors. 1.9% of Hanmi Financial shares are held by company insiders. Comparatively, 4.8% of TriCo Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Hanmi Financial has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hanmi Financial and TriCo Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanmi Financial	$430.37 million	2.01	$62.20 million	$2.39	12.08
TriCo Bancshares	$531.04 million	3.06	$114.87 million	$3.56	14.02

TriCo Bancshares has higher revenue and earnings than Hanmi Financial. Hanmi Financial is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hanmi Financial and TriCo Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	3	2	0	2.40
TriCo Bancshares	0	4	3	0	2.43

Hanmi Financial currently has a consensus target price of $28.50, indicating a potential downside of 1.25%. TriCo Bancshares has a consensus target price of $48.60, indicating a potential downside of 2.64%. Given Hanmi Financial’s higher probable upside, analysts clearly believe Hanmi Financial is more favorable than TriCo Bancshares.

Profitability

This table compares Hanmi Financial and TriCo Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanmi Financial	16.53%	9.59%	0.93%
TriCo Bancshares	21.87%	9.27%	1.19%

Dividends

Hanmi Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.7%. TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. Hanmi Financial pays out 45.2% of its earnings in the form of a dividend. TriCo Bancshares pays out 40.4% 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. Hanmi Financial has increased its dividend for 1 consecutive years and TriCo Bancshares has increased its dividend for 12 consecutive years.

Summary

TriCo Bancshares beats Hanmi Financial on 12 of the 17 factors compared between the two stocks.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.