Reviewing Hanmi Financial (NASDAQ:HAFC) and City Bank (OTCMKTS:CTBK)

City Bank (OTCMKTS:CTBK) and Hanmi Financial (NASDAQ:HAFC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares City Bank and Hanmi Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Bank	N/A	N/A	N/A	N/A	N/A
Hanmi Financial	$430.37 million	1.96	$62.20 million	$2.39	11.80

Hanmi Financial has higher revenue and earnings than City Bank.

Institutional & Insider Ownership

88.7% of Hanmi Financial shares are held by institutional investors. 37.5% of City Bank shares are held by insiders. Comparatively, 1.9% of Hanmi Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares City Bank and Hanmi Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Bank	N/A	N/A	N/A
Hanmi Financial	16.53%	9.59%	0.93%

Analyst Recommendations

This is a summary of recent ratings and target prices for City Bank and Hanmi Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Bank	0	0	0	0	0.00
Hanmi Financial	0	2	2	1	2.80

Hanmi Financial has a consensus target price of $28.50, suggesting a potential upside of 1.06%. Given Hanmi Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Hanmi Financial is more favorable than City Bank.

Summary

Hanmi Financial beats City Bank on 9 of the 10 factors compared between the two stocks.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.