Financial Analysis: Westamerica Bancorporation (NASDAQ:WABC) versus City Bank (OTCMKTS:CTBK)

Westamerica Bancorporation (NASDAQ:WABC) and City Bank (OTCMKTS:CTBK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westamerica Bancorporation	43.19%	13.10%	2.02%
City Bank	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Westamerica Bancorporation and City Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westamerica Bancorporation	0	3	0	0	2.00
City Bank	0	0	0	0	0.00

Westamerica Bancorporation currently has a consensus price target of $52.00, suggesting a potential upside of 6.40%. Given Westamerica Bancorporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Westamerica Bancorporation is more favorable than City Bank.

Earnings & Valuation

This table compares Westamerica Bancorporation and City Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westamerica Bancorporation	$311.17 million	3.92	$138.64 million	$4.59	10.65
City Bank	N/A	N/A	N/A	N/A	N/A

Westamerica Bancorporation has higher revenue and earnings than City Bank.

Institutional & Insider Ownership

81.9% of Westamerica Bancorporation shares are held by institutional investors. 5.3% of Westamerica Bancorporation shares are held by company insiders. Comparatively, 37.5% of City Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Westamerica Bancorporation beats City Bank on 7 of the 8 factors compared between the two stocks.

About Westamerica Bancorporation

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.