Westamerica Bancorporation (NASDAQ: WABC) and Hudson Valley (NYSE:HVB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Dividends

Westamerica Bancorporation pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. Hudson Valley does not pay a dividend. Westamerica Bancorporation pays out 69.6% of its earnings in the form of a dividend. Westamerica Bancorporation has increased its dividend for 4 consecutive years and Hudson Valley has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Westamerica Bancorporation and Hudson Valley, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westamerica Bancorporation 1 2 0 0 1.67
Hudson Valley 0 0 0 0 N/A

Westamerica Bancorporation presently has a consensus target price of $56.00, indicating a potential downside of 3.66%. Given Westamerica Bancorporation’s higher possible upside, equities analysts plainly believe Westamerica Bancorporation is more favorable than Hudson Valley.

Institutional & Insider Ownership

86.0% of Westamerica Bancorporation shares are held by institutional investors. 4.9% of Westamerica Bancorporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Westamerica Bancorporation and Hudson Valley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westamerica Bancorporation 33.38% 10.28% 1.12%
Hudson Valley 17.98% 6.34% 0.61%

Valuation and Earnings

This table compares Westamerica Bancorporation and Hudson Valley’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westamerica Bancorporation $180.63 million 8.48 $58.85 million $2.30 25.27
Hudson Valley N/A N/A N/A $0.55 51.29

Westamerica Bancorporation has higher revenue and earnings than Hudson Valley. Westamerica Bancorporation is trading at a lower price-to-earnings ratio than Hudson Valley, indicating that it is currently the more affordable of the two stocks.

Summary

Westamerica Bancorporation beats Hudson Valley on 10 of the 12 factors compared between the two stocks.

Westamerica Bancorporation Company Profile

Westamerica Bancorporation is a bank holding company. The Company provides a range of banking services to individual and corporate customers in Northern and Central California through its subsidiary bank, Westamerica Bank. The communities served are located in Northern and Central California, from Mendocino, Lake and Nevada Counties in the north to Kern County in the south. It provides a range of loans, including commercial loans, commercial real estate loans, construction loans, residential real estate loans, and consumer installment and other loans. It maintains a securities portfolio consisting of securities issued by the United States Treasury, United States Government sponsored entities, agency and non-agency mortgage backed securities (MBS), non-agency commercial MBS, agency residential collateralized mortgage obligations (CMO), non-agency residential CMO, obligations of states and political subdivisions, asset-backed securities, corporate securities and other securities.

Hudson Valley Company Profile

Hudson Valley Holding Corp. (Hudson Valley) is a bank holding company. The Company provides financial services through its wholly owned subsidiary, Hudson Valley Bank, N.A. (HVB or the Bank), a national banking association. HVB has 17 branch offices in Westchester County, New York, four in Manhattan, New York, four in Bronx County, New York, two in Rockland County, New York, and one in Kings County, New York. The Company provides asset-based lending products through a wholly owned subsidiary of HVB, HVB Capital Credit LLC. The Company provides equipment loan and lease financing through a wholly owned subsidiary of HVB, HVB Equipment Capital, LLC. The Company’s principal customers are businesses, professionals, municipalities, not-for-profit organizations and individuals. In addition, the Company also offers a software application designed to meet the administrative needs of bankruptcy trustees through a marketing and licensing agreement with the application vendor.

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