Head to Head Analysis: Hanmi Financial (NASDAQ:HAFC) & First Northwest Bancorp (NASDAQ:FNWB)

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

Earnings and Valuation

This table compares First Northwest Bancorp and Hanmi Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northwest Bancorp	$118.64 million	0.89	-$4.19 million	$0.55	20.27
Hanmi Financial	$444.90 million	2.17	$76.09 million	$2.68	12.12

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

Volatility & Risk

First Northwest Bancorp has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Hanmi Financial has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First Northwest Bancorp and Hanmi Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northwest Bancorp	0	3	1	0	2.25
Hanmi Financial	0	4	2	0	2.33

First Northwest Bancorp presently has a consensus price target of $13.50, suggesting a potential upside of 21.08%. Hanmi Financial has a consensus price target of $32.10, suggesting a potential downside of 1.20%. Given First Northwest Bancorp’s higher probable upside, equities research analysts plainly believe First Northwest Bancorp is more favorable than Hanmi Financial.

Insider & Institutional Ownership

66.1% of First Northwest Bancorp shares are held by institutional investors. Comparatively, 88.7% of Hanmi Financial shares are held by institutional investors. 4.1% of First Northwest Bancorp shares are held by insiders. Comparatively, 2.1% of Hanmi Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares First Northwest Bancorp and Hanmi Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Northwest Bancorp	4.20%	3.14%	0.23%
Hanmi Financial	18.05%	10.31%	1.03%

Summary

Hanmi Financial beats First Northwest Bancorp on 11 of the 14 factors compared between the two stocks.

About First Northwest Bancorp

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States. The company accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit. It also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit. First Northwest Bancorp operates branch offices in Clallam, Jefferson, King, Kitsap, and Whatcom Counties, Washington. First Northwest Bancorp was founded in 1923 and is based in Port Angeles, Washington.

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.