Northeast Bancorp (NASDAQ:NBN) versus CVB Financial (NASDAQ:CVBF) Head-To-Head Review

CVB Financial (NASDAQ:CVBF) and Northeast Bancorp (NASDAQ:NBN) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares CVB Financial and Northeast Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVB Financial	29.54%	9.91%	1.47%
Northeast Bancorp	27.91%	19.35%	2.22%

Earnings & Valuation

This table compares CVB Financial and Northeast Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVB Financial	$648.47 million	6.22	$209.30 million	$1.45	15.81
Northeast Bancorp	$385.07 million	2.74	$107.48 million	$12.72	10.12

CVB Financial has higher revenue and earnings than Northeast Bancorp. Northeast Bancorp is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. CVB Financial pays out 55.2% of its earnings in the form of a dividend. Northeast Bancorp pays out 0.3% 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.

Analyst Recommendations

This is a summary of recent ratings for CVB Financial and Northeast Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	1	4	0	2.80
Northeast Bancorp	0	1	2	0	2.67

CVB Financial currently has a consensus target price of $26.25, indicating a potential upside of 14.53%. Northeast Bancorp has a consensus target price of $143.50, indicating a potential upside of 11.46%. Given CVB Financial’s stronger consensus rating and higher possible upside, analysts plainly believe CVB Financial is more favorable than Northeast Bancorp.

Volatility & Risk

CVB Financial has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

74.2% of CVB Financial shares are owned by institutional investors. 6.4% of CVB Financial shares are owned by insiders. Comparatively, 14.2% of Northeast Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CVB Financial beats Northeast Bancorp on 11 of the 16 factors compared between the two stocks.

About CVB Financial

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers. The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture 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; 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, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access. Further, the company provides trust services, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

About Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.