Cadence Bank (NYSE:CADE) vs. HarborOne Bancorp (NASDAQ:HONE) Head to Head Analysis
by Sarita Garza · The Markets DailyCadence Bank (NYSE:CADE – Get Free Report) and HarborOne Bancorp (NASDAQ:HONE – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
Valuation and Earnings
This table compares Cadence Bank and HarborOne Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadence Bank | $921.95 million | 6.18 | $542.30 million | $3.13 | 9.99 |
| HarborOne Bancorp | $160.61 million | 3.44 | $16.08 million | $0.37 | 33.43 |
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.
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 summary of recent ratings and target prices for Cadence Bank and HarborOne Bancorp, as provided 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 $34.63, indicating a potential upside of 10.69%. HarborOne Bancorp has a consensus price target of $14.00, indicating a potential upside of 13.18%. Given HarborOne Bancorp’s higher possible upside, analysts clearly believe HarborOne Bancorp is more favorable than Cadence Bank.
Insider and Institutional Ownership
84.6% of Cadence Bank shares are owned by institutional investors. Comparatively, 65.0% of HarborOne Bancorp shares are owned by institutional investors. 2.2% of Cadence Bank shares are owned by company insiders. Comparatively, 4.9% of HarborOne Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and 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.
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 raised 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.
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.