City (NASDAQ:CHCO – Get Free Report) and Chiba Bank (OTCMKTS:CHBAY – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Earnings and Valuation
This table compares City and Chiba Bank”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| City | $398.98 million | 4.94 | $130.49 million | $9.14 | 15.34 |
| Chiba Bank | $2.96 billion | 4.73 | $620.82 million | $4.72 | 19.12 |
Risk & Volatility
City has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.
Dividends
City pays an annual dividend of $3.48 per share and has a dividend yield of 2.5%. Chiba Bank pays an annual dividend of $1.23 per share and has a dividend yield of 1.4%. City pays out 38.1% of its earnings in the form of a dividend. Chiba Bank pays out 26.1% 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. City has raised its dividend for 6 consecutive years. City is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
72.4% of City shares are owned by institutional investors. 1.8% of City shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations for City and Chiba Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| City | 0 | 3 | 1 | 0 | 2.25 |
| Chiba Bank | 0 | 0 | 0 | 1 | 4.00 |
City presently has a consensus target price of $136.50, indicating a potential downside of 2.67%. Given City’s higher probable upside, analysts clearly believe City is more favorable than Chiba Bank.
Profitability
This table compares City and Chiba Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| City | 32.58% | 16.34% | 1.95% |
| Chiba Bank | 20.96% | 8.25% | 0.49% |
Summary
City beats Chiba Bank on 12 of the 18 factors compared between the two stocks.
About City
City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; home equity lines of credit; amortized home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts, as well as owner-occupied real estate and construction, land development, and lines of credit. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government-insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.
About Chiba Bank
The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.
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