Reviewing HarborOne Bancorp (NASDAQ:HONE) & Cadence Bank (NYSE:CADE)

Cadence Bank (NYSE:CADE) and HarborOne Bancorp (NASDAQ:HONE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Cadence Bank and HarborOne Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	24.42%	8.82%	0.88%
HarborOne Bancorp	5.20%	4.59%	0.46%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cadence Bank and HarborOne Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Bank	0	6	5	1	2.58
HarborOne Bancorp	0	1	0	0	2.00

Cadence Bank presently has a consensus price target of $34.46, indicating a potential upside of 10.80%. HarborOne Bancorp has a consensus price target of $14.00, indicating a potential upside of 11.82%. Given HarborOne Bancorp’s higher probable upside, analysts plainly believe HarborOne Bancorp is more favorable than Cadence Bank.

Earnings and Valuation

This table compares Cadence Bank and HarborOne Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Bank	$2.19 billion	2.58	$542.30 million	$3.13	9.94
HarborOne Bancorp	$286.14 million	1.94	$16.08 million	$0.37	33.84

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

Dividends

Cadence Bank pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. HarborOne Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. Cadence Bank pays out 31.9% of its earnings in the form of a dividend. HarborOne Bancorp pays out 86.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cadence Bank has increased its dividend for 13 consecutive years. Cadence Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Cadence Bank has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, HarborOne Bancorp has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

84.6% of Cadence Bank shares are held by institutional investors. Comparatively, 65.0% of HarborOne Bancorp shares are held by institutional investors. 2.2% of Cadence Bank shares are held by insiders. Comparatively, 4.9% of HarborOne Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Cadence Bank beats HarborOne Bancorp on 15 of the 18 factors compared between the two stocks.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company's products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

About HarborOne Bancorp

HarborOne Bancorp, Inc. operates as the holding company for HarborOne Bank that provides financial services to individuals, families, small and mid-size businesses, and municipalities. The company operates in two segments, HarborOne Bank and HarborOne Mortgage. Its primary deposit products include checking, money market, savings, and term certificate of deposit accounts; and primary lending products comprise commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The company also originates, sells, and services residential mortgage loans. In addition, it provides various educational services, such as free digital content, webinars, and recordings for small business and personal financial education under the HarborOne U name. The company operates through a network of full-service branches located in Massachusetts and Rhode Island, as well as commercial lending offices in each of Boston, Massachusetts, and Providence, Rhode Island, as well as administrative offices in Brockton, Massachusetts, as well as ATM locations in Massachusetts. HarborOne Bancorp, Inc. was founded in 1917 and is headquartered in Brockton, Massachusetts.