CVB Financial (CVBF) and Its Competitors Critical Survey

CVB Financial (NASDAQ:CVBF) is one of 919 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare CVB Financial to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares CVB Financial and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CVB Financial	$640.96 million	$209.30 million	14.90
CVB Financial Competitors	$257.61 billion	$2.42 billion	21.40

CVB Financial’s peers have higher revenue and earnings than CVB Financial. CVB Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. CVB Financial pays out 53.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. CVB Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

74.2% of CVB Financial shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 6.4% of CVB Financial shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

CVB Financial has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, CVB Financial’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for CVB Financial and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	1	4	0	2.80
CVB Financial Competitors	7494	30254	27863	1490	2.35

CVB Financial currently has a consensus target price of $26.50, indicating a potential upside of 17.81%. As a group, “Banks” companies have a potential upside of 14.39%. Given CVB Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe CVB Financial is more favorable than its peers.

Profitability

This table compares CVB Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVB Financial	29.54%	9.42%	1.41%
CVB Financial Competitors	15.63%	9.41%	0.93%

Summary

CVB Financial beats its peers on 8 of the 15 factors compared.

CVB Financial Company Profile

CVB Financial Corporation is the bank holding company for Citizens Business Bank, a California-based financial institution founded in 1974. The bank serves businesses, professionals, individuals and nonprofit organizations, with a strong presence in Southern California and operations in other parts of the state. Citizens Business Bank provides commercial and small-business banking, including deposit accounts, business loans, commercial real estate financing and cash-management services. It also offers personal banking and trust and wealth-management services.