Contrasting Hanmi Financial (NASDAQ:HAFC) and First National of Nebraska (OTCMKTS:FINN)

Hanmi Financial (NASDAQ:HAFC) and First National of Nebraska (OTCMKTS:FINN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

88.7% of Hanmi Financial shares are held by institutional investors. Comparatively, 0.7% of First National of Nebraska shares are held by institutional investors. 1.9% of Hanmi Financial shares are held by company insiders. Comparatively, 41.7% of First National of Nebraska shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Hanmi Financial and First National of Nebraska’s 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%
First National of Nebraska	N/A	N/A	N/A

Earnings and Valuation

This table compares Hanmi Financial and First National of Nebraska”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanmi Financial	$259.79 million	3.12	$62.20 million	$2.39	11.31
First National of Nebraska	$3.23 billion	1.17	$412.43 million	N/A	N/A

First National of Nebraska has higher revenue and earnings than Hanmi Financial.

Analyst Ratings

This is a summary of current ratings and target prices for Hanmi Financial and First National of Nebraska, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	2	2	1	2.80
First National of Nebraska	0	0	0	0	0.00

Hanmi Financial currently has a consensus price target of $28.50, indicating a potential upside of 5.44%. Given Hanmi Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hanmi Financial is more favorable than First National of Nebraska.

Volatility and Risk

Hanmi Financial has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, First National of Nebraska has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Dividends

Hanmi Financial pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. First National of Nebraska pays an annual dividend of $160.00 per share and has a dividend yield of 1.1%. Hanmi Financial pays out 45.2% of its earnings in the form of a dividend. Hanmi Financial has increased its dividend for 1 consecutive years. Hanmi Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Hanmi Financial beats First National of Nebraska on 12 of the 16 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 First National of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.