Financial Contrast: CVB Financial (CVBF) and Hingham Institution for Savings (HIFS)

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CVB Financial (NASDAQ:CVBF) and Hingham Institution for Savings (NASDAQ:HIFS) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Risk & Volatility

CVB Financial has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Hingham Institution for Savings has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Institutional & Insider Ownership

62.5% of CVB Financial shares are held by institutional investors. Comparatively, 32.4% of Hingham Institution for Savings shares are held by institutional investors. 6.9% of CVB Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares CVB Financial and Hingham Institution for Savings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVB Financial 34.92% 11.11% 1.55%
Hingham Institution for Savings 34.51% N/A N/A

Dividends

CVB Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. Hingham Institution for Savings pays an annual dividend of $1.48 per share and has a dividend yield of 0.7%. CVB Financial pays out 52.3% of its earnings in the form of a dividend. CVB Financial has raised its dividend for 5 consecutive years and Hingham Institution for Savings has raised its dividend for 3 consecutive years. CVB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for CVB Financial and Hingham Institution for Savings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVB Financial 0 4 2 0 2.33
Hingham Institution for Savings 0 0 0 0 N/A

CVB Financial currently has a consensus target price of $24.38, indicating a potential upside of 11.91%. Given CVB Financial’s higher probable upside, equities research analysts clearly believe CVB Financial is more favorable than Hingham Institution for Savings.

Earnings and Valuation

This table compares CVB Financial and Hingham Institution for Savings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVB Financial $329.34 million 9.28 $104.41 million $1.07 20.36
Hingham Institution for Savings $82.47 million 5.12 $25.76 million N/A N/A

CVB Financial has higher revenue and earnings than Hingham Institution for Savings.

Summary

CVB Financial beats Hingham Institution for Savings on 14 of the 15 factors compared between the two stocks.

CVB Financial Company Profile

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides banking, lending, and investment services. It operates in two segments, Banking Centers; and Dairy & Livestock and Agribusiness. The company offers checking, savings, and money market accounts, as well as time certificates of deposit; and serves as a federal tax depository for business customers. It also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans that are secured by owner-occupied and investor owned properties; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, the company offers various specialized services, such as cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, payroll services, remote deposit capture, electronic funds transfer, and online account access. Further, it provides trust and investment-related services to customers through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. The company's customers consist primarily of small to mid-sized businesses and individuals located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. As of April 18, 2018, the company operated 51 banking centers and 3 trust office locations. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

Hingham Institution for Savings Company Profile

Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.

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