Reviewing City Bank (OTCMKTS:CTBK) & CPB (NYSE:CPF)

CPB (NYSE:CPF) and City Bank (OTCMKTS:CTBK) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Insider & Institutional Ownership

88.4% of CPB shares are owned by institutional investors. 1.7% of CPB shares are owned by insiders. Comparatively, 37.5% of City Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares CPB and City Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPB	$365.98 million	2.32	$77.48 million	$2.86	11.23
City Bank	N/A	N/A	N/A	N/A	N/A

CPB has higher revenue and earnings than City Bank.

Profitability

This table compares CPB and City Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPB	21.17%	13.64%	1.06%
City Bank	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CPB and City Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	1	2	0	2.67
City Bank	0	0	0	0	0.00

CPB currently has a consensus price target of $36.50, indicating a potential upside of 13.65%. Given CPB’s stronger consensus rating and higher probable upside, research analysts clearly believe CPB is more favorable than City Bank.

Summary

CPB beats City Bank on 8 of the 9 factors compared between the two stocks.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.