Happen Inc. (HAPN) vs Hope Bancorp, Inc. (HOPE)

Happen Inc. and Hope Bancorp, Inc. are both Banks Regional companies. Happen Inc. and Hope Bancorp, Inc. are of similar size ($1.8B and $1.8B). Happen Inc. trades at the lower P/E: 8.8× against 13.8×. Happen Inc. grew revenue faster over the last twelve months: 11.6% against 8.78%. Happen Inc. has the higher net margin (14.0% vs 12.5%) and the higher return on invested capital (24.5% vs 4.56%). Across the 18 metrics below, Happen Inc. leads on 14 and Hope Bancorp, Inc. on 4.

Valuation

Metric HAPN HOPE Banks Regional median
P/E 8.84 13.83 12.15
P/S 1.24 1.73 2.37
P/B 1.11 0.77 1.21
Price to free cash flow n/m 9.38 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.59 1.67 2.27
Earnings yield 11.31% 7.23% 8.11%
Free cash flow yield (170.51%) 10.67% 8.98%

Profitability

Metric HAPN HOPE Banks Regional median
Gross margin 75.19% 56.48% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 14.03% 12.52% 18.66%
Free cash flow margin (212.17%) 18.46% 21.18%
Return on equity 13.15% 5.66% 10.64%
Return on assets 1.68% 0.68% 1.13%
Return on invested capital 24.47% 4.56% 8.33%

Growth

Metric HAPN HOPE Banks Regional median
Revenue growth (TTM) 11.62% 8.78% 6.61%
EPS growth (last fiscal year) 157.78% (40.24%) —
Revenue growth, 5-year CAGR 23.29% 8.21% 12.30%
Net income growth, 5-year CAGR 0.00% (11.20%) 9.71%

Health

Metric HAPN HOPE Banks Regional median
Debt to equity 0.00 0.25 0.22
Current ratio 0.72 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HAPN HOPE Banks Regional median
Dividend yield — 5.28% 3.75%
Payout ratio 0.00 0.37 0.27

Size

Metric HAPN HOPE Banks Regional median
Market cap 1.77b 1.75b 921.07m

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