Analyzing Western Alliance Bancorporation (NYSE:WAL) & California First Leasing (OTCMKTS:CFNBD)

Western Alliance Bancorporation (NYSE:WAL) and California First Leasing (OTCMKTS:CFNBD) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

Western Alliance Bancorporation has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, California First Leasing has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Western Alliance Bancorporation and California First Leasing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	17.03%	13.58%	1.09%
California First Leasing	N/A	N/A	N/A

Institutional and Insider Ownership

79.2% of Western Alliance Bancorporation shares are owned by institutional investors. Comparatively, 6.5% of California First Leasing shares are owned by institutional investors. 2.7% of Western Alliance Bancorporation shares are owned by insiders. Comparatively, 92.2% of California First Leasing shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Western Alliance Bancorporation and California First Leasing”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$5.37 billion	1.62	$969.00 million	$8.59	9.29
California First Leasing	$30.12 million	10.14	$20.27 million	N/A	N/A

Western Alliance Bancorporation has higher revenue and earnings than California First Leasing.

Analyst Ratings

This is a summary of recent ratings and price targets for Western Alliance Bancorporation and California First Leasing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	0	4	10	0	2.71
California First Leasing	0	0	0	0	0.00

Western Alliance Bancorporation currently has a consensus target price of $92.93, suggesting a potential upside of 16.40%. Given Western Alliance Bancorporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Western Alliance Bancorporation is more favorable than California First Leasing.

Summary

Western Alliance Bancorporation beats California First Leasing on 10 of the 12 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About California First Leasing

California First Leasing Corporation provides loans and lease financing for universities, businesses, and other commercial or non-profit organizations. The company was formerly known as California First National Bancorp and changed its name to California First Leasing Corporation in February 2021. California First Leasing Corporation was founded in 1977 and is based in Newport Beach, California.