Financial Analysis: Cathay General Bancorp (CATY) versus The Competition
Cathay General Bancorp (NASDAQ: CATY) is one of 26 publicly-traded companies in the “Retail & Mortgage Banks” industry, but how does it contrast to its rivals? We will compare Cathay General Bancorp to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Volatility & Risk
Cathay General Bancorp has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Cathay General Bancorp’s rivals have a beta of 0.82, meaning that their average share price is 18% less volatile than the S&P 500.
This is a breakdown of recent ratings for Cathay General Bancorp and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cathay General Bancorp||0||3||2||0||2.40|
|Cathay General Bancorp Competitors||158||565||522||23||2.32|
Cathay General Bancorp currently has a consensus price target of $40.20, suggesting a potential upside of 0.00%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 27.34%. Given Cathay General Bancorp’s rivals higher probable upside, analysts plainly believe Cathay General Bancorp has less favorable growth aspects than its rivals.
Cathay General Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Cathay General Bancorp pays out 34.6% of its earnings in the form of a dividend. As a group, “Retail & Mortgage Banks” companies pay a dividend yield of 1.6% and pay out 28.4% of their earnings in the form of a dividend.
Insider and Institutional Ownership
67.8% of Cathay General Bancorp shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Retail & Mortgage Banks” companies are owned by institutional investors. 5.8% of Cathay General Bancorp shares are owned by insiders. Comparatively, 12.9% of shares of all “Retail & Mortgage Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Cathay General Bancorp and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Cathay General Bancorp||$475.33 million||N/A||16.54|
|Cathay General Bancorp Competitors||$678.45 million||$169.32 million||12.33|
Cathay General Bancorp’s rivals have higher revenue and earnings than Cathay General Bancorp. Cathay General Bancorp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares Cathay General Bancorp and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cathay General Bancorp||35.30%||10.54%||1.36%|
|Cathay General Bancorp Competitors||14.79%||-27.48%||0.87%|
Cathay General Bancorp beats its rivals on 8 of the 14 factors compared.
Cathay General Bancorp Company Profile
Cathay General Bancorp is a bank holding company. The Company holds Cathay Bank, a California state-chartered commercial bank (the Bank); seven limited partnerships investing in affordable housing investments; GBC Venture Capital, Inc., and Asia Realty Corp. The Company also owns the common stock of five statutory business trusts created for issuing capital securities. The Bank primarily services individuals, professionals and small to medium-sized businesses in the local markets and provides commercial mortgage loans, commercial loans, small business administration (SBA) loans, residential mortgage loans, real estate construction loans, home equity lines of credit and installment loans to individuals for automobile, household and other consumer expenditures. The Bank offers passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of deposit and public funds deposits.
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