Hanmi Financial (HAFC) vs. The Competition Head to Head Analysis

Hanmi Financial (NASDAQ:HAFC) is one of 920 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Hanmi Financial to similar companies based on the strength of its institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

88.7% of Hanmi Financial shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are owned by institutional investors. 2.1% of Hanmi Financial shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Hanmi Financial pays an annual dividend of $1.12 per share and has a dividend yield of 3.5%. Hanmi Financial pays out 37.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 11.6% and pay out 29.2% of their earnings in the form of a dividend. Hanmi Financial has raised its dividend for 1 consecutive years. Hanmi Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Hanmi Financial and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hanmi Financial	$286.08 million	N/A	10.91
Hanmi Financial Competitors	$6.29 billion	$4.08 billion	18.98

Hanmi Financial’s peers have higher revenue and earnings than Hanmi Financial. Hanmi Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Hanmi Financial has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Hanmi Financial’s peers have a beta of 0.68, meaning that their average stock price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Hanmi Financial and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	4	2	0	2.33
Hanmi Financial Competitors	7448	30097	27641	1443	2.35

Hanmi Financial presently has a consensus target price of $33.00, indicating a potential upside of 1.82%. As a group, “Banks” companies have a potential upside of 15.06%. Given Hanmi Financial’s peers stronger consensus rating and higher possible upside, analysts clearly believe Hanmi Financial has less favorable growth aspects than its peers.

Profitability

This table compares Hanmi Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanmi Financial	N/A	N/A	N/A
Hanmi Financial Competitors	3.80%	5.40%	0.17%

Summary

Hanmi Financial peers beat Hanmi Financial on 12 of the 14 factors compared.

Hanmi Financial Company Profile

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.