Financial Survey: CPB (NYSE:CPF) and First Interstate BancSystem (NASDAQ:FIBK)

CPB (NYSE:CPF) and First Interstate BancSystem (NASDAQ:FIBK) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Valuation and Earnings

This table compares CPB and First Interstate BancSystem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPB	$299.81 million	3.39	$77.48 million	$3.12	12.50
First Interstate BancSystem	$1.05 billion	3.48	$302.10 million	$3.25	11.58

First Interstate BancSystem has higher revenue and earnings than CPB. First Interstate BancSystem is trading at a lower price-to-earnings ratio than CPB, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CPB and First Interstate BancSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPB	22.52%	14.20%	1.13%
First Interstate BancSystem	23.63%	9.55%	1.22%

Risk & Volatility

CPB has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, First Interstate BancSystem has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Dividends

CPB pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 5.0%. CPB pays out 38.5% of its earnings in the form of a dividend. First Interstate BancSystem pays out 57.8% 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. CPB has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CPB and First Interstate BancSystem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	1	2	2	3.20
First Interstate BancSystem	3	3	2	0	1.88

CPB currently has a consensus price target of $39.33, suggesting a potential upside of 0.89%. First Interstate BancSystem has a consensus price target of $37.17, suggesting a potential downside of 1.21%. Given CPB’s stronger consensus rating and higher possible upside, equities analysts plainly believe CPB is more favorable than First Interstate BancSystem.

Institutional and Insider Ownership

88.4% of CPB shares are held by institutional investors. Comparatively, 88.7% of First Interstate BancSystem shares are held by institutional investors. 1.7% of CPB shares are held by insiders. Comparatively, 8.0% of First Interstate BancSystem 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.

Summary

First Interstate BancSystem beats CPB on 9 of the 17 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 First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.