CVB Financial Corporation (CVBF) and WesBanco (WSBC) Head to Head Contrast
CVB Financial Corporation (NASDAQ: CVBF) and WesBanco (NASDAQ:WSBC) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Institutional & Insider Ownership
68.5% of CVB Financial Corporation shares are owned by institutional investors. Comparatively, 58.0% of WesBanco shares are owned by institutional investors. 7.0% of CVB Financial Corporation shares are owned by insiders. Comparatively, 4.1% of WesBanco 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.
This table compares CVB Financial Corporation and WesBanco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CVB Financial Corporation||35.60%||10.89%||1.36%|
Volatility and Risk
CVB Financial Corporation has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, WesBanco has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
This is a breakdown of recent ratings and target prices for CVB Financial Corporation and WesBanco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CVB Financial Corporation||0||4||0||0||2.00|
CVB Financial Corporation presently has a consensus price target of $22.25, suggesting a potential downside of 3.34%. WesBanco has a consensus price target of $41.60, suggesting a potential upside of 3.90%. Given WesBanco’s stronger consensus rating and higher probable upside, analysts plainly believe WesBanco is more favorable than CVB Financial Corporation.
CVB Financial Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. WesBanco pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. CVB Financial Corporation pays out 53.8% of its earnings in the form of a dividend. WesBanco pays out 44.4% 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. WesBanco is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares CVB Financial Corporation and WesBanco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CVB Financial Corporation||$300.60 million||8.44||$101.42 million||$1.04||22.13|
|WesBanco||$367.60 million||4.80||$86.63 million||$2.34||17.11|
CVB Financial Corporation has higher revenue, but lower earnings than WesBanco. WesBanco is trading at a lower price-to-earnings ratio than CVB Financial Corporation, indicating that it is currently the more affordable of the two stocks.
CVB Financial Corporation beats WesBanco on 9 of the 16 factors compared between the two stocks.
CVB Financial Corporation Company Profile
CVB Financial Corp. (CVB) is the bank holding company for Citizens Business Bank (the Bank). The Bank operates through two segments: Business Financial and Commercial Banking Centers (Centers), and Other Operations. The Company’s administrative and other smaller operating departments are combined into the Other segment. As of December 31, 2016, there were 42 Business Financial Centers and eight Commercial Banking Centers located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. Its trust offices are located in Ontario, Newport Beach and Pasadena. These offices serve as sales offices for the Bank’s wealth management, trust and investment products. It also offers specialized services designed for commercial customers. These services include cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, and payroll services.
WesBanco Company Profile
WesBanco, Inc. (WesBanco) is a bank holding company. The Company offers a range of financial services, including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WesBanco offers its services through two segments: community banking, which offers services, such as commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and trust and investment services, which offers trust services, as well as various alternative investment products, including mutual funds. The Community Banking segment also offers insurance and securities brokerage services, among others. As of December 31, 2016, WesBanco operated one commercial bank, WesBanco Bank, Inc. through 174 branches and 163 automated teller machines (ATMs) located in West Virginia, Ohio, western Pennsylvania, Kentucky and southern Indiana.
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