Washington Banking (NASDAQ: WBCO) and Citizens Financial Group (NYSE:CFG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional & Insider Ownership

98.8% of Citizens Financial Group shares are held by institutional investors. 0.2% of Citizens Financial Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Citizens Financial Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Washington Banking does not pay a dividend. Citizens Financial Group pays out 29.1% of its earnings in the form of a dividend. Citizens Financial Group has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Washington Banking and Citizens Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Banking N/A N/A N/A N/A N/A
Citizens Financial Group $5.76 billion 3.56 $1.05 billion $2.47 16.88

Citizens Financial Group has higher revenue and earnings than Washington Banking.

Profitability

This table compares Washington Banking and Citizens Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Banking N/A N/A N/A
Citizens Financial Group 20.26% 6.44% 0.84%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Washington Banking and Citizens Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Banking 0 0 0 0 N/A
Citizens Financial Group 2 5 6 0 2.31

Citizens Financial Group has a consensus price target of $40.42, suggesting a potential downside of 3.08%.

Summary

Citizens Financial Group beats Washington Banking on 9 of the 10 factors compared between the two stocks.

Washington Banking Company Profile

Washington Banking Company is a bank holding company. The Company’s primary business is conducted by its wholly owned subsidiary, Whidbey Island Bank (the Bank). The business of the Bank, which is focused in the northern area of Western Washington, consists primarily of attracting deposits from the general public and originating loans. Whidbey Island Bank conducts a full-service, community, commercial banking business. The Bank also offers nondeposit managed investment products and services, which are not Federal Deposit Insurance Corporation (FDIC) insured. These programs are provided through the investment advisory companies Elliott Cove Capital Management LLC and DFC Services & DFC Insurance Services. Another nondeposit product offered through the Bank, which is not FDIC insured, is a sweep investment option available through a brokerage account.

Citizens Financial Group Company Profile

Citizens Financial Group, Inc. is a retail bank holding company. The Company operates through two segments: Consumer Banking and Commercial Banking. Its Consumer Banking serves retail customers and small businesses. Consumer Banking products and services include deposit products, mortgage and home equity lending, auto financing, student loans, personal unsecured lines and loans, credit cards, business loans, wealth management and investment services. The Company’s Commercial Banking segment offers a range of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange and interest rate risk management solutions, as well as corporate finance, merger and acquisition, and debt and equity capital markets capabilities. The Company delivers a range of retail and commercial banking products and services to individuals, institutions and companies. As of December 31, 2016, the Company operated approximately 1,200 branches.

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