East West Bancorp (NASDAQ: CBFV) and CB Financial Services (NASDAQ:CBFV) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for East West Bancorp and CB Financial Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
East West Bancorp 0 5 8 0 2.62
CB Financial Services 0 1 1 0 2.50

East West Bancorp presently has a consensus target price of $71.50, indicating a potential upside of 14.13%. CB Financial Services has a consensus target price of $35.00, indicating a potential upside of 15.13%. Given CB Financial Services’ higher probable upside, analysts clearly believe CB Financial Services is more favorable than East West Bancorp.

Profitability

This table compares East West Bancorp and CB Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
East West Bancorp 34.15% 15.12% 1.59%
CB Financial Services 13.37% 6.22% 0.64%

Insider & Institutional Ownership

88.8% of East West Bancorp shares are held by institutional investors. Comparatively, 26.7% of CB Financial Services shares are held by institutional investors. 0.9% of East West Bancorp shares are held by insiders. Comparatively, 10.6% of CB Financial Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

East West Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 1.5%. CB Financial Services pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. East West Bancorp pays out 26.6% of its earnings in the form of a dividend. CB Financial Services pays out 52.7% 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.

Valuation and Earnings

This table compares East West Bancorp and CB Financial Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
East West Bancorp $1.58 billion 5.73 $505.62 million $3.46 18.11
CB Financial Services $40.23 million 4.09 $6.94 million $1.67 18.20

East West Bancorp has higher revenue and earnings than CB Financial Services. East West Bancorp is trading at a lower price-to-earnings ratio than CB Financial Services, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

East West Bancorp has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, CB Financial Services has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Summary

East West Bancorp beats CB Financial Services on 12 of the 16 factors compared between the two stocks.

East West Bancorp Company Profile

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to small and medium-sized businesses, business executives, professionals, and other individuals in the United States and Greater China. It operates through three segments: Retail Banking, Commercial Banking, and Other. The company offers various deposit products, including personal and business checking and savings accounts, time deposits, individual retirement accounts, travelers checks, safe deposit boxes, and MasterCard and Visa merchant deposit services. It is involved in lending activities, such as commercial and residential real estate, construction, and trade finance, as well as commercial business comprising accounts receivable, small business administration, inventory, and working capital loans. In addition, the company offers commercial lending loans that include commercial and industrial, multifamily residential, and land loans; and consumer lending loans, which comprise single-family residential, home equity lines of credit, and other consumer loans, as well as financing to clients needing a financial bridge to facilitate their business transactions between the United States and Greater China. Further, it provides various international finance, trade finance, and cash management services and products; treasury services; and Internet-based services, including online banking services. As of January 25, 2018, the company operated a network of approximately 130 locations in California, Georgia, Massachusetts, Nevada, New York, Texas, and Washington; full service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was founded in 1998 and is headquartered in Pasadena, California.

CB Financial Services Company Profile

CB Financial Services, Inc. operates as the bank holding company for Community Bank that provides various banking products and services for individuals and businesses in southwestern Pennsylvania. The company's deposit products include demand deposits, NOW accounts, money market accounts, savings accounts, and time deposits. Its loan products comprise residential real estate loans, such as one-to four-family mortgage loans, multifamily mortgage loans, home equity installment loans, and home equity lines of credit; commercial real estate loans that are secured primarily by improved properties, such as retail facilities, office buildings, and other non-residential buildings; construction loans to individuals to finance the construction of residential dwellings, as well as for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses; commercial and industrial loans, and lines of credit; consumer loans consisting of indirect auto loans, secured and unsecured loans, and lines of credit; and other loans. In addition, the company provides sweep and insured money sweep, remote electronic deposit, online banking with bill pay, mobile banking, and automated clearing house services; and conducts insurance brokerage activities by offering property and casualty, commercial liability, surety, and other insurance products. As of May 16, 2018, it operated 16 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland counties in southwestern Pennsylvania; 7 offices in Brooke, Marshall, Ohio, Upshur, and Wetzel counties in West Virginia; and 1 office in Belmont County in Ohio. The company was founded in 1901 and is headquartered in Carmichaels, Pennsylvania.

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