Hawthorn Bancshares (NASDAQ:HWBK) and The First of Long Island (NASDAQ:FLIC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.
Profitability
This table compares Hawthorn Bancshares and The First of Long Island's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Hawthorn Bancshares | 17.41% | 11.07% | 0.83% |
| The First of Long Island | 26.67% | 10.78% | 1.02% |
Analyst Ratings
This is a summary of recent ratings for Hawthorn Bancshares and The First of Long Island, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Hawthorn Bancshares | 0 | 0 | 0 | 0 | N/A |
| The First of Long Island | 0 | 0 | 2 | 0 | 3.00 |
The First of Long Island has a consensus price target of $19.50, suggesting a potential downside of 10.96%. Given The First of Long Island's higher possible upside, analysts clearly believe The First of Long Island is more favorable than Hawthorn Bancshares.
Risk & Volatility
Hawthorn Bancshares has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, The First of Long Island has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Valuation and Earnings
This table compares Hawthorn Bancshares and The First of Long Island's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Hawthorn Bancshares | $72.91 million | 1.87 | $16.11 million | N/A | N/A |
| The First of Long Island | $154.46 million | 3.37 | $41.56 million | $1.75 | 12.51 |
The First of Long Island has higher revenue and earnings than Hawthorn Bancshares.
Insider & Institutional Ownership
31.0% of Hawthorn Bancshares shares are held by institutional investors. Comparatively, 56.8% of The First of Long Island shares are held by institutional investors. 10.8% of Hawthorn Bancshares shares are held by company insiders. Comparatively, 5.4% of The First of Long Island shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
Hawthorn Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.5%. The First of Long Island pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. The First of Long Island pays out 43.4% of its earnings in the form of a dividend. Hawthorn Bancshares has increased its dividend for 1 consecutive years and The First of Long Island has increased its dividend for 14 consecutive years. The First of Long Island is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
The First of Long Island beats Hawthorn Bancshares on 12 of the 15 factors compared between the two stocks.
