Central Valley Community Bancorp (NASDAQ:CVCY) versus MVB Financial (NASDAQ:MVBF) Critical Comparison

Central Valley Community Bancorp (NASDAQ:CVCYGet Rating) and MVB Financial (NASDAQ:MVBFGet Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

48.9% of Central Valley Community Bancorp shares are owned by institutional investors. Comparatively, 46.3% of MVB Financial shares are owned by institutional investors. 15.1% of Central Valley Community Bancorp shares are owned by insiders. Comparatively, 15.6% of MVB Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Central Valley Community Bancorp and MVB Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Central Valley Community Bancorp $82.86 million 2.34 $28.40 million $2.18 7.62
MVB Financial $146.02 million 2.82 $39.12 million $2.14 15.82

MVB Financial has higher revenue and earnings than Central Valley Community Bancorp. Central Valley Community Bancorp is trading at a lower price-to-earnings ratio than MVB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Central Valley Community Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Central Valley Community Bancorp pays out 22.0% of its earnings in the form of a dividend. MVB Financial pays out 31.8% 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. Central Valley Community Bancorp has raised its dividend for 1 consecutive years and MVB Financial has raised its dividend for 6 consecutive years. Central Valley Community Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Central Valley Community Bancorp has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, MVB Financial has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Central Valley Community Bancorp and MVB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central Valley Community Bancorp 0 1 0 0 2.00
MVB Financial 0 1 0 1 3.00

Central Valley Community Bancorp currently has a consensus target price of $20.50, suggesting a potential upside of 23.35%. MVB Financial has a consensus target price of $44.50, suggesting a potential upside of 31.42%. Given MVB Financial’s stronger consensus rating and higher probable upside, analysts clearly believe MVB Financial is more favorable than Central Valley Community Bancorp.

Profitability

This table compares Central Valley Community Bancorp and MVB Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central Valley Community Bancorp 31.00% 11.36% 1.08%
MVB Financial 17.79% 10.28% 0.98%

Summary

MVB Financial beats Central Valley Community Bancorp on 10 of the 17 factors compared between the two stocks.

About Central Valley Community Bancorp

(Get Rating)

Central Valley Community Bancorp operates as the bank holding company for the Central Valley Community Bank that provides various commercial banking services to small and middle-market businesses and individuals in the central valley area of California. The company accepts demand, savings, and time deposits; certificates of deposit; and non-interest-bearing demand deposits, as well as provides NOW and money market accounts. Its loan products include commercial and industrial loans, as well as loans secured by crop production and livestock; owner occupied and investor commercial real estate, real estate construction and other land, agricultural real estate, and other real estate loans; and equity loans and lines of credit, and installment and other consumer loans. The company also offers domestic and international wire transfer, safe deposit box, Internet banking, and other customary banking services. As of December 31, 2021, the company operated through a network of 20 full-service banking offices in Cameron Park, Clovis, Exeter, Folsom, Fresno, Gold River, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Roseville, Sacramento, Stockton, and Visalia. Central Valley Community Bancorp was founded in 1979 and is based in Fresno, California.

About MVB Financial

(Get Rating)

MVB Financial Corp., through its subsidiaries, provides financial services to individuals and corporate clients in the Mid-Atlantic region and internationally. The company operates through three segments: CoRe Banking, Mortgage Banking, and Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers title insurance; and integrated regulatory compliance, state licensing, financial crimes prevention, and enterprise risk management services that include consulting, outsourcing, testing, and training solutions. Further, the company offers a customizable suite of fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and consulting for the development of online and mobile banking platforms, and digital products for Fintech companies, as well as develops software. As of December 31, 2021, it operated six full-service branches in West Virginia and two full-service branches in Virginia. MVB Financial Corp. was founded in 1997 and is headquartered in Fairmont, West Virginia.

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