City (NASDAQ:CHCO) and CoBiz Financial (NASDAQ:COBZ) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Volatility and Risk
City has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, CoBiz Financial has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Insider & Institutional Ownership
66.9% of City shares are owned by institutional investors. Comparatively, 78.9% of CoBiz Financial shares are owned by institutional investors. 3.8% of City shares are owned by insiders. Comparatively, 9.5% of CoBiz Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares City and CoBiz Financial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|City||$206.54 million||5.42||$54.31 million||$3.94||18.39|
|CoBiz Financial||$177.19 million||5.30||$32.91 million||$0.95||23.31|
City has higher revenue and earnings than CoBiz Financial. City is trading at a lower price-to-earnings ratio than CoBiz Financial, indicating that it is currently the more affordable of the two stocks.
City pays an annual dividend of $1.84 per share and has a dividend yield of 2.5%. CoBiz Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. City pays out 46.7% of its earnings in the form of a dividend. CoBiz Financial pays out 42.1% 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. City has increased its dividend for 6 consecutive years and CoBiz Financial has increased its dividend for 6 consecutive years.
This table compares City and CoBiz Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for City and CoBiz Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
City presently has a consensus target price of $74.50, suggesting a potential upside of 2.84%. CoBiz Financial has a consensus target price of $20.25, suggesting a potential downside of 8.54%. Given City’s stronger consensus rating and higher probable upside, equities analysts clearly believe City is more favorable than CoBiz Financial.
City beats CoBiz Financial on 10 of the 16 factors compared between the two stocks.
City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States. The company accepts various deposit products, such as checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of a residence; first-lien home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, production of conventional and government insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, and debit card services. As of January 31, 2018, the company operated through a network of 86 branches in West Virginia, Virginia, Kentucky, and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.
About CoBiz Financial
CoBiz Financial Inc., a diversified financial services company, provides various financial products and services in the United States. It operates through Commercial Banking and Fee-Based Lines segments. The Commercial Banking segment offers commercial, real estate, and private banking services, as well as treasury management, interest-rate hedging, and depository products. The Fee-Based Lines segment provides investment advisory and insurance brokerage services; investment management advisory services to individuals, families, and businesses; and property and casualty, and employee benefit group insurance broker agency services to small- to mid-sized employers, commercial enterprises, and individual lines to their owners. CoBiz Financial Inc. operates 11 locations, including 7 in the Denver metropolitan area, as well as one each in Boulder, Colorado Springs, Fort Collins, and Vail located in Colorado under the Colorado Business Bank name; and 4 locations serving the Phoenix metropolitan area and the surrounding area of Maricopa County in Arizona under the Arizona Business Bank name. The company was formerly known as CoBiz Inc. and changed its name to CoBiz Financial Inc. in May 2007. CoBiz Financial Inc., was founded in 1980 and is headquartered in Denver, Colorado.
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