Head-To-Head Comparison: CVB Financial (NASDAQ:CVBF) versus CoastalSouth Bancshares (NYSE:COSO)

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

Institutional and Insider Ownership

74.2% of CVB Financial shares are owned by institutional investors. 15.1% of CoastalSouth Bancshares shares are owned by company insiders. Comparatively, 6.4% of CVB Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

CoastalSouth Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. CoastalSouth Bancshares pays out 8.4% of its earnings in the form of a dividend. CVB Financial pays out 53.0% 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.

Volatility and Risk

CoastalSouth Bancshares has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Valuation and Earnings

This table compares CoastalSouth Bancshares and CVB Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoastalSouth Bancshares	$135.78 million	2.46	$24.89 million	$2.39	11.71
CVB Financial	$648.47 million	6.13	$209.30 million	$1.51	14.95

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CoastalSouth Bancshares	20.56%	11.20%	1.25%
CVB Financial	29.54%	9.42%	1.41%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoastalSouth Bancshares	0	1	2	1	3.00
CVB Financial	0	1	4	0	2.80

CoastalSouth Bancshares presently has a consensus target price of $31.50, indicating a potential upside of 12.58%. CVB Financial has a consensus target price of $26.25, indicating a potential upside of 16.25%. Given CVB Financial’s higher possible upside, analysts plainly believe CVB Financial is more favorable than CoastalSouth Bancshares.

Summary

CVB Financial beats CoastalSouth Bancshares on 11 of the 17 factors compared between the two stocks.

About CoastalSouth Bancshares

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. Today, we have a community banking presence in some of the fastest growing and most business-friendly markets in the U.S., namely the Lowcountry of South Carolina (Hilton Head Island, Bluffton, and Beaufort), nearby Savannah, Georgia, and the Atlanta, Georgia market. — In addition to our traditional community banking operations, we operate four specialty lines of business that provide scalability and diversification: • Senior Housing Lending – focuses on lending to operators across the spectrum of senior care, with an emphasis on assisted living; • Marine Lending – focuses on consumer loans primarily to high-net-worth borrowers secured by yachts and high-end sport fishing vessels; • Government Guaranteed Lending – focuses on origination of small business and other loans guaranteed by the SBA and USDA; and • Mortgage Banker Finance – focuses on mortgage warehouse lending to mortgage originators. By combining the relationship-based focus of a community bank with our specialty lines of business, we believe we can capitalize on the substantial growth opportunities available in our markets, particularly given the scarcity of community banks between $1.5 billion and $5.0 billion in total assets. Our principal executive offices are located in Atlanta, Georgia.

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.