Analyzing WaFd (NASDAQ:WAFD) and City Bank (OTCMKTS:CTBK)

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

Institutional and Insider Ownership

83.7% of WaFd shares are held by institutional investors. 1.5% of WaFd shares are held by insiders. Comparatively, 37.5% of City Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WaFd	16.02%	8.40%	0.84%
City Bank	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for WaFd and City Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WaFd	0	5	0	0	2.00
City Bank	0	0	0	0	0.00

WaFd currently has a consensus price target of $32.00, indicating a potential downside of 3.24%. Given City Bank’s higher probable upside, analysts plainly believe City Bank is more favorable than WaFd.

Earnings and Valuation

This table compares WaFd and City Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WaFd	$1.41 billion	1.79	$226.07 million	$2.64	12.53
City Bank	N/A	N/A	N/A	N/A	N/A

WaFd has higher revenue and earnings than City Bank.

Summary

WaFd beats City Bank on 6 of the 8 factors compared between the two stocks.

About WaFd

WaFd, Inc operates as the bank holding company for Washington Federal Bank that provides lending, depository, insurance, and other banking services in the United States. The company offers deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts. It also provides single-family dwellings, construction, land acquisition and development, consumer lot, multi-family residential, commercial real estate, home equity, business, and consumer loans, as well as commercial and industrial loans. In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; and debit and credit cards, as well as acts as the trustee. It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate. The company was formerly known as Washington Federal, Inc. and changed its name to WaFd, Inc in September 2023. WaFd, Inc was founded in 1917 and is headquartered in Seattle, Washington.

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.