CVB Financial (NASDAQ:CVBF) and CB Financial Services (NASDAQ:CBFV) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
This table compares CVB Financial and CB Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CB Financial Services||12.78%||5.87%||0.61%|
CVB Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. CB Financial Services pays an annual dividend of $0.92 per share and has a dividend yield of 3.7%. CVB Financial pays out 52.3% of its earnings in the form of a dividend. CB Financial Services pays out 55.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CVB Financial has increased its dividend for 5 consecutive years.
Volatility and Risk
CVB Financial has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider & Institutional Ownership
62.5% of CVB Financial shares are owned by institutional investors. Comparatively, 29.9% of CB Financial Services shares are owned by institutional investors. 6.9% of CVB Financial shares are owned by company insiders. Comparatively, 10.6% of CB Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares CVB Financial and CB Financial Services’ 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|
|CB Financial Services||$40.23 million||3.35||$6.94 million||$1.67||14.91|
CVB Financial has higher revenue and earnings than CB Financial Services. CB Financial Services is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for CVB Financial and CB Financial Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CB Financial Services||0||1||1||0||2.50|
CVB Financial presently has a consensus target price of $24.38, indicating a potential upside of 11.91%. CB Financial Services has a consensus target price of $35.00, indicating a potential upside of 40.56%. Given CB Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe CB Financial Services is more favorable than CVB Financial.
CVB Financial beats CB Financial Services on 12 of the 17 factors compared between the two stocks.
About CVB Financial
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.
About CB Financial Services
CB Financial Services, Inc. operates as the bank holding company for Community Bank that provides various banking products and services for individuals and businesses in southwestern Pennsylvania. The company's deposit products include demand deposits, NOW accounts, money market accounts, savings accounts, and time deposits. Its loan products comprise residential real estate loans, such as one-to four-family mortgage loans, multifamily mortgage loans, home equity installment loans, and home equity lines of credit; commercial real estate loans that are secured primarily by improved properties, such as retail facilities, office buildings, and other non-residential buildings; construction loans to individuals to finance the construction of residential dwellings, as well as for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses; commercial and industrial loans, and lines of credit; consumer loans consisting of indirect auto loans, secured and unsecured loans, and lines of credit; and other loans. In addition, the company provides sweep and insured money sweep, remote electronic deposit, online banking with bill pay, mobile banking, and automated clearing house services; and conducts insurance brokerage activities by offering property and casualty, commercial liability, surety, and other insurance products. As of May 16, 2018, it operated 16 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland counties in southwestern Pennsylvania; 7 offices in Brooke, Marshall, Ohio, Upshur, and Wetzel counties in West Virginia; and 1 office in Belmont County in Ohio. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.
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