Head to Head Analysis: CVB Financial (CVBF) versus The Competition

CVB Financial (NASDAQ:CVBF) is one of 919 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare CVB Financial to similar businesses based on the strength of its earnings, dividends, profitability, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

74.2% of CVB Financial shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 6.4% of CVB Financial shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held 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.

Valuation and Earnings

This table compares CVB Financial and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CVB Financial	$648.47 million	$209.30 million	14.91
CVB Financial Competitors	$18.18 billion	$2.42 billion	21.02

CVB Financial’s peers have higher revenue and earnings than CVB Financial. CVB Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for CVB Financial and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	1	4	0	2.80
CVB Financial Competitors	7503	30277	27877	1492	2.35

CVB Financial currently has a consensus target price of $26.50, indicating a potential upside of 17.67%. As a group, “Banks” companies have a potential upside of 14.42%. Given CVB Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe CVB Financial is more favorable than its peers.

Profitability

This table compares CVB Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVB Financial	29.54%	9.42%	1.41%
CVB Financial Competitors	15.66%	9.47%	0.93%

Dividends

CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. CVB Financial pays out 53.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. CVB Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

CVB Financial has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, CVB Financial’s peers have a beta of 0.62, meaning that their average stock price is 38% less volatile than the S&P 500.

Summary

CVB Financial peers beat CVB Financial on 8 of the 15 factors compared.

CVB Financial Company Profile

CVB Financial Corporation is the bank holding company for Citizens Business Bank, a California-based financial institution founded in 1974. The bank serves businesses, professionals, individuals and nonprofit organizations, with a strong presence in Southern California and operations in other parts of the state. Citizens Business Bank provides commercial and small-business banking, including deposit accounts, business loans, commercial real estate financing and cash-management services. It also offers personal banking and trust and wealth-management services.