Cullen/Frost Bankers (NYSE:CFR) and Mission Valley Bancorp (OTCMKTS:MVLY) Head to Head Review

Mission Valley Bancorp (OTCMKTS:MVLY) and Cullen/Frost Bankers (NYSE:CFR) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Risk and Volatility

Mission Valley Bancorp has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Mission Valley Bancorp and Cullen/Frost Bankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Valley Bancorp	N/A	N/A	N/A
Cullen/Frost Bankers	22.21%	15.49%	1.24%

Earnings and Valuation

This table compares Mission Valley Bancorp and Cullen/Frost Bankers”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Valley Bancorp	N/A	N/A	$8.00 million	$2.39	7.62
Cullen/Frost Bankers	$2.92 billion	2.84	$648.56 million	$9.92	13.21

Cullen/Frost Bankers has higher revenue and earnings than Mission Valley Bancorp. Mission Valley Bancorp is trading at a lower price-to-earnings ratio than Cullen/Frost Bankers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Mission Valley Bancorp and Cullen/Frost Bankers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Valley Bancorp	0	0	0	0	0.00
Cullen/Frost Bankers	3	6	4	0	2.08

Cullen/Frost Bankers has a consensus price target of $142.67, suggesting a potential upside of 8.89%. Given Cullen/Frost Bankers’ stronger consensus rating and higher possible upside, analysts clearly believe Cullen/Frost Bankers is more favorable than Mission Valley Bancorp.

Dividends

Mission Valley Bancorp pays an annual dividend of $0.15 per share and has a dividend yield of 0.8%. Cullen/Frost Bankers pays an annual dividend of $4.00 per share and has a dividend yield of 3.1%. Mission Valley Bancorp pays out 6.3% of its earnings in the form of a dividend. Cullen/Frost Bankers pays out 40.3% 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. Cullen/Frost Bankers has increased its dividend for 32 consecutive years. Cullen/Frost Bankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

5.7% of Mission Valley Bancorp shares are held by institutional investors. Comparatively, 86.9% of Cullen/Frost Bankers shares are held by institutional investors. 1.2% of Cullen/Frost Bankers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Cullen/Frost Bankers beats Mission Valley Bancorp on 15 of the 16 factors compared between the two stocks.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, savings, and time deposits; and certificates of deposit. It also offers accounts receivable loans, advanced restaurant financing loans, commercial loans, real estate loans, small business administration loans, and term loans; consumer loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services to other financial institutions. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.