Head-To-Head Review: Columbia Banking System (NASDAQ:COLB) versus Malaga Financial (OTCMKTS:MLGF)

Columbia Banking System (NASDAQ:COLB) and Malaga Financial (OTCMKTS:MLGF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Valuation and Earnings

This table compares Columbia Banking System and Malaga Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Banking System	$3.21 billion	2.63	$550.00 million	$2.26	12.88
Malaga Financial	N/A	N/A	$21.55 million	$2.18	9.84

Columbia Banking System has higher revenue and earnings than Malaga Financial. Malaga Financial is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Columbia Banking System and Malaga Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Banking System	0	10	4	1	2.40
Malaga Financial	0	0	0	0	0.00

Columbia Banking System currently has a consensus price target of $31.58, indicating a potential upside of 8.51%. Given Columbia Banking System’s stronger consensus rating and higher possible upside, equities analysts plainly believe Columbia Banking System is more favorable than Malaga Financial.

Dividends

Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 5.1%. Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. Columbia Banking System pays out 65.5% of its earnings in the form of a dividend. Malaga Financial pays out 45.9% 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. Columbia Banking System has raised its dividend for 4 consecutive years. Columbia Banking System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

92.5% of Columbia Banking System shares are held by institutional investors. Comparatively, 1.1% of Malaga Financial shares are held by institutional investors. 0.6% of Columbia Banking System 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 Columbia Banking System and Malaga Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Banking System	17.11%	11.40%	1.26%
Malaga Financial	N/A	N/A	N/A

Volatility and Risk

Columbia Banking System has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Malaga Financial has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Summary

Columbia Banking System beats Malaga Financial on 16 of the 17 factors compared between the two stocks.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.

About Malaga Financial

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.