Guaranty Bancorp (NASDAQ: GBNK) and CVB Financial Corporation (NASDAQ:CVBF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Guaranty Bancorp and CVB Financial Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guaranty Bancorp 0 3 3 0 2.50
CVB Financial Corporation 0 5 0 0 2.00

Guaranty Bancorp currently has a consensus price target of $28.63, indicating a potential upside of 9.05%. CVB Financial Corporation has a consensus price target of $21.00, indicating a potential downside of 0.24%. Given Guaranty Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Guaranty Bancorp is more favorable than CVB Financial Corporation.

Earnings and Valuation

This table compares Guaranty Bancorp and CVB Financial Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Guaranty Bancorp $131.60 million 5.57 $34.06 million $1.22 21.52
CVB Financial Corporation $312.74 million 7.41 $110.15 million $1.00 21.05

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

Volatility & Risk

Guaranty Bancorp has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, CVB Financial Corporation has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

70.2% of Guaranty Bancorp shares are held by institutional investors. Comparatively, 67.6% of CVB Financial Corporation shares are held by institutional investors. 8.4% of Guaranty Bancorp shares are held by insiders. Comparatively, 7.8% of CVB Financial Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Guaranty Bancorp and CVB Financial Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guaranty Bancorp 23.00% 10.23% 1.08%
CVB Financial Corporation 35.33% 10.67% 1.32%

Dividends

Guaranty Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 1.9%. CVB Financial Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Guaranty Bancorp pays out 41.0% of its earnings in the form of a dividend. CVB Financial Corporation pays out 56.0% 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.

About Guaranty Bancorp

Guaranty Bancorp is a bank holding company. The Company’s bank subsidiary is Guaranty Bank and Trust Company (the Bank). As of December 31, 2016, the Company operated 32 branches and two investment management firms, Private Capital Management LLC (PCM) and Cherry Hills Investment Advisors Inc. (CHIA), in Colorado through the Bank. The Bank provides banking and other financial services, including commercial and industrial loans, real estate loans, construction loans, consumer loans and agriculture loans across its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. Along with loans and depository services, the Bank also provides wealth management solutions, including trust and investment management services. The Bank’s commercial and industrial loan portfolio consists of operating loans secured by business assets.

About CVB Financial Corporation

CVB Financial Corp. (CVB) is the bank holding company for Citizens Business Bank (the Bank). The Bank operates through two segments: Business Financial and Commercial Banking Centers (Centers), and Other Operations. The Company’s administrative and other smaller operating departments are combined into the Other segment. As of December 31, 2016, there were 42 Business Financial Centers and eight Commercial Banking Centers located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. Its trust offices are located in Ontario, Newport Beach and Pasadena. These offices serve as sales offices for the Bank’s wealth management, trust and investment products. It also offers specialized services designed for commercial customers. These services include cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, and payroll services.

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