Critical Comparison: CPB (NYSE:CPF) versus Riverview Bancorp (NASDAQ:RVSB)

CPB (NYSE:CPF) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Earnings and Valuation

This table compares CPB and Riverview Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPB	$299.54 million	3.30	$77.48 million	$3.31	11.73
Riverview Bancorp	$64.74 million	1.98	-$4.34 million	($0.14)	-45.79

CPB has higher revenue and earnings than Riverview Bancorp. Riverview Bancorp 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 Riverview Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPB	23.69%	14.75%	1.17%
Riverview Bancorp	-4.46%	3.76%	0.38%

Dividends

CPB pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.2%. CPB pays out 37.5% of its earnings in the form of a dividend. Riverview Bancorp pays out -57.1% 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. CPB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for CPB and Riverview Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	3	2	1	2.67
Riverview Bancorp	0	2	1	0	2.33

CPB currently has a consensus price target of $40.33, suggesting a potential upside of 3.91%. Given CPB’s stronger consensus rating and higher probable upside, analysts plainly believe CPB is more favorable than Riverview Bancorp.

Volatility and Risk

CPB has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

88.4% of CPB shares are owned by institutional investors. Comparatively, 69.6% of Riverview Bancorp shares are owned by institutional investors. 1.7% of CPB shares are owned by insiders. Comparatively, 3.9% of Riverview Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

CPB beats Riverview Bancorp on 16 of the 18 factors compared between the two stocks.

About CPB

The identifiers in the request do not match: CPB is the ticker for The Campbell’s Company, while NYSE: CPF is Central Pacific Financial Corp. The description below is for Central Pacific Financial. Central Pacific Financial is a bank holding company and the parent of Central Pacific Bank, a community bank founded in Honolulu in 1954. The company serves individuals, businesses and organizations primarily in Hawaii. Through Central Pacific Bank, it offers deposit accounts, personal and business lending, digital banking and other banking services.

About Riverview Bancorp

Riverview Bancorp, Inc. is the holding company for Riverview Community Bank, a community-focused financial institution headquartered in Vancouver, Washington. The bank provides deposit products, residential and commercial real estate loans, commercial and industrial lending, construction financing, consumer loans, and other banking services for individuals, families, businesses, and nonprofit organizations. Riverview Community Bank serves customers in southwestern Washington and the Portland metropolitan area of Oregon through its branch network and digital banking services.