FHB vs WAFD

For growth investors, First Hawaiian, Inc.

(FHB) is the stronger pick with 3. 2% revenue growth year-over-year, versus -1. 6% for WaFd, Inc. (WAFD). First Hawaiian, Inc. (FHB) offers the better valuation at 12. 6x trailing P/E (12. 2x forward), making it the more compelling value choice. Analysts rate First Hawaiian, Inc. (FHB) a "Hold" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, First Hawaiian, Inc.

(FHB) is the cheapest at 12. 6x versus WaFd, Inc. at 13. 6x. On forward P/E, WaFd, Inc. is actually cheaper at 10. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: First Hawaiian, Inc. wins at 1. 35x versus WaFd, Inc. 's 3. 55x — a reasonable growth-adjusted valuation.

Over the past 5 years, WaFd, Inc.

(WAFD) delivered a total return of +22. 3%, compared to +15. 0% for First Hawaiian, Inc. (FHB). Over 10 years, the gap is even starker: WAFD returned +84. 0% versus FHB's +53. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), WaFd, Inc.

(WAFD) is the lower-risk stock at 0. 81β versus First Hawaiian, Inc. 's 1. 03β — meaning FHB is approximately 26% more volatile than WAFD relative to the S&P 500.

By revenue growth (latest reported year), First Hawaiian, Inc.

(FHB) is pulling ahead at 3. 2% versus -1. 6% for WaFd, Inc. (WAFD). On earnings-per-share growth, the picture is similar: First Hawaiian, Inc. grew EPS 22. 9% year-over-year, compared to 5. 2% for WaFd, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

First Hawaiian, Inc.

(FHB) is the more profitable company, earning 23. 6% net margin versus 16. 0% for WaFd, Inc. — meaning it keeps 23. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FHB leads at 30. 3% versus 20. 5% for WAFD. At the gross margin level — before operating expenses — FHB leads at 73. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, First Hawaiian, Inc. (FHB) is the more undervalued stock at a PEG of 1. 35x versus WaFd, Inc. 's 3. 55x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, WaFd, Inc. (WAFD) trades at 10. 9x forward P/E versus 12. 2x for First Hawaiian, Inc. — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FHB: 0. 8% to $27. 83.

All stocks in this comparison pay dividends.

First Hawaiian, Inc. (FHB) offers the highest yield at 3. 8%, versus 3. 0% for WaFd, Inc. (WAFD).

For long-horizon retirement investors, WaFd, Inc.

(WAFD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 81), 3. 0% yield). Both have compounded well over 10 years (WAFD: +84. 0%, FHB: +53. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.