Critical Survey: Bancorp (NASDAQ:TBBK) versus Hingham Institution for Savings (NASDAQ:HIFS)

Hingham Institution for Savings (NASDAQ:HIFS) and Bancorp (NASDAQ:TBBK) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings and Valuation

This table compares Hingham Institution for Savings and Bancorp”s top-line 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	2.68	$54.55 million	$22.81	12.76
Bancorp	$879.70 million	2.67	$228.21 million	$5.14	10.99

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

Institutional & Insider Ownership

49.3% of Hingham Institution for Savings shares are owned by institutional investors. Comparatively, 96.2% of Bancorp shares are owned by institutional investors. 6.0% of Bancorp shares are owned 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

Hingham Institution for Savings has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hingham Institution for Savings and Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hingham Institution for Savings	0	1	0	0	2.00
Bancorp	0	3	6	1	2.80

Bancorp has a consensus target price of $59.50, suggesting a potential upside of 5.31%. Given Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Bancorp is more favorable than Hingham Institution for Savings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hingham Institution for Savings	21.17%	7.89%	0.81%
Bancorp	26.92%	30.56%	2.52%

Summary

Bancorp beats Hingham Institution for Savings on 12 of the 15 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 Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.