Head-To-Head Comparison: Columbia Banking System (NASDAQ:COLB) versus Hanover Bancorp (NASDAQ:HNVR)

Columbia Banking System (NASDAQ:COLB) and Hanover Bancorp (NASDAQ:HNVR) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Dividends

Columbia Banking System pays an annual dividend of $1.44 per share and has a dividend yield of 5.0%. Hanover Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Columbia Banking System pays out 62.3% of its earnings in the form of a dividend. Hanover Bancorp pays out 24.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Columbia Banking System and Hanover Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Banking System	16.15%	10.13%	0.98%
Hanover Bancorp	8.39%	6.77%	0.54%

Institutional & Insider Ownership

92.5% of Columbia Banking System shares are owned by institutional investors. Comparatively, 15.0% of Hanover Bancorp shares are owned by institutional investors. 0.6% of Columbia Banking System shares are owned by company insiders. Comparatively, 24.8% of Hanover Bancorp shares 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.

Earnings & Valuation

This table compares Columbia Banking System and Hanover Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Banking System	$2.74 billion	2.18	$348.71 million	$2.31	12.37
Hanover Bancorp	$113.89 million	1.53	$3.52 million	$1.65	14.82

Columbia Banking System has higher revenue and earnings than Hanover Bancorp. Columbia Banking System is trading at a lower price-to-earnings ratio than Hanover Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Columbia Banking System has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Hanover Bancorp has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Columbia Banking System and Hanover Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Banking System	0	9	4	0	2.31
Hanover Bancorp	0	1	1	0	2.50

Columbia Banking System presently has a consensus price target of $29.31, suggesting a potential upside of 2.55%. Hanover Bancorp has a consensus price target of $22.00, suggesting a potential downside of 10.02%. Given Columbia Banking System’s higher probable upside, equities research analysts plainly believe Columbia Banking System is more favorable than Hanover Bancorp.

Summary

Columbia Banking System beats Hanover Bancorp on 12 of the 16 factors compared between the two stocks.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.

About Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.