East West Bancorp (NASDAQ: EWBC) and Westamerica Bancorporation (NASDAQ:WABC) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Risk & Volatility
East West Bancorp has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
East West Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Westamerica Bancorporation pays an annual dividend of $1.60 per share and has a dividend yield of 2.7%. East West Bancorp pays out 21.9% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 69.6% 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. Westamerica Bancorporation has raised its dividend for 5 consecutive years. Westamerica Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares East West Bancorp and Westamerica Bancorporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|East West Bancorp||34.75%||13.51%||1.37%|
Valuation and Earnings
This table compares East West Bancorp and Westamerica Bancorporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|East West Bancorp||$1.32 billion||7.32||$431.67 million||$3.65||18.32|
|Westamerica Bancorporation||$180.63 million||8.60||$58.85 million||$2.30||25.64|
East West Bancorp has higher revenue and earnings than Westamerica Bancorporation. East West Bancorp is trading at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.4% of East West Bancorp shares are held by institutional investors. Comparatively, 86.0% of Westamerica Bancorporation shares are held by institutional investors. 0.9% of East West Bancorp shares are held by company insiders. Comparatively, 4.9% of Westamerica Bancorporation shares are held by company 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 is a summary of recent ratings and target prices for East West Bancorp and Westamerica Bancorporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|East West Bancorp||1||6||6||0||2.38|
East West Bancorp presently has a consensus target price of $67.00, suggesting a potential upside of 0.21%. Westamerica Bancorporation has a consensus target price of $56.00, suggesting a potential downside of 5.05%. Given East West Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe East West Bancorp is more favorable than Westamerica Bancorporation.
East West Bancorp beats Westamerica Bancorporation on 12 of the 17 factors compared between the two stocks.
East West Bancorp Company Profile
East West Bancorp, Inc. is a bank holding company. The Company’s principal business is to serve as a holding company for East West Bank (the Bank) and other banking or banking-related subsidiaries. The Bank is a California state-chartered bank, which operates in the United States and Greater China. The Bank provides a range of personal and commercial banking services to businesses, business executives, professionals, and other individuals. It operates through three segments: Retail Banking, Commercial Banking and Other. The Retail Banking segment focuses primarily on retail operations through the Bank’s branch network. The Commercial Banking segment primarily generates commercial and industrial (C&I) loans and commercial real estate (CRE) loans through the domestic commercial lending operations in California, New York, Texas, Washington, Massachusetts, Nevada and Georgia, and through the foreign commercial lending operations in China and Hong Kong.
Westamerica Bancorporation Company Profile
Westamerica Bancorporation is a bank holding company. The Company provides a range of banking services to individual and corporate customers in Northern and Central California through its subsidiary bank, Westamerica Bank. The communities served are located in Northern and Central California, from Mendocino, Lake and Nevada Counties in the north to Kern County in the south. It provides a range of loans, including commercial loans, commercial real estate loans, construction loans, residential real estate loans, and consumer installment and other loans. It maintains a securities portfolio consisting of securities issued by the United States Treasury, United States Government sponsored entities, agency and non-agency mortgage backed securities (MBS), non-agency commercial MBS, agency residential collateralized mortgage obligations (CMO), non-agency residential CMO, obligations of states and political subdivisions, asset-backed securities, corporate securities and other securities.
Receive News & Ratings for East West Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for East West Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.