Head to Head Survey: Coastal Financial (NASDAQ:CCB) vs. City Bank (OTCMKTS:CTBK)

Coastal Financial (NASDAQ:CCB) and City Bank (OTCMKTS:CTBK) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation & Earnings

This table compares Coastal Financial and City Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$409.61 million	3.86	$45.22 million	$3.16	33.09
City Bank	N/A	N/A	N/A	N/A	N/A

Coastal Financial has higher revenue and earnings than City Bank.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	7.14%	10.45%	1.09%
City Bank	N/A	N/A	N/A

Institutional and Insider Ownership

59.2% of Coastal Financial shares are held by institutional investors. 14.1% of Coastal Financial shares are held by insiders. Comparatively, 37.5% of City Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Coastal Financial and City Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	0	1	5	1	3.00
City Bank	0	0	0	0	0.00

Coastal Financial presently has a consensus target price of $116.20, suggesting a potential upside of 11.12%. Given Coastal Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Coastal Financial is more favorable than City Bank.

Summary

Coastal Financial beats City Bank on 9 of the 10 factors compared between the two stocks.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

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.