Coastal Financial (NASDAQ:CCB) & Columbia Banking System (NASDAQ:COLB) Head to Head Review

Coastal Financial (NASDAQ:CCB) and Columbia Banking System (NASDAQ:COLB) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Coastal Financial and Columbia Banking System, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	0	1	6	1	3.00
Columbia Banking System	0	12	3	1	2.31

Coastal Financial currently has a consensus target price of $125.17, suggesting a potential upside of 9.71%. Columbia Banking System has a consensus target price of $29.38, suggesting a potential upside of 0.49%. Given Coastal Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Coastal Financial is more favorable than Columbia Banking System.

Profitability

This table compares Coastal Financial and Columbia Banking System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	7.14%	10.45%	1.09%
Columbia Banking System	15.98%	11.13%	1.18%

Volatility and Risk

Coastal Financial has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

59.2% of Coastal Financial shares are held by institutional investors. Comparatively, 92.5% of Columbia Banking System shares are held by institutional investors. 14.1% of Coastal Financial shares are held by company insiders. Comparatively, 0.7% of Columbia Banking System shares are held by company 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$409.61 million	4.21	$45.22 million	$3.16	36.10
Columbia Banking System	$2.07 billion	4.22	$533.67 million	$2.22	13.17

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

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

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.