Head-To-Head Review: BEO Bancorp (OTCMKTS:BEOB) versus Columbia Banking System (NASDAQ:COLB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BEO Bancorp	N/A	N/A	N/A
Columbia Banking System	17.11%	11.40%	1.26%

Insider and Institutional Ownership

92.5% of Columbia Banking System shares are held by institutional investors. 0.7% of Columbia Banking System shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for BEO Bancorp and Columbia Banking System, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BEO Bancorp	0	0	0	0	0.00
Columbia Banking System	0	11	3	1	2.33

Columbia Banking System has a consensus target price of $32.04, suggesting a potential upside of 4.77%. Given Columbia Banking System’s stronger consensus rating and higher probable upside, analysts clearly believe Columbia Banking System is more favorable than BEO Bancorp.

Dividends

BEO Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 4.8%. BEO Bancorp pays out 15.2% of its earnings in the form of a dividend. Columbia Banking System pays out 65.5% 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. Columbia Banking System has raised its dividend for 4 consecutive years. Columbia Banking System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares BEO Bancorp and Columbia Banking System”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BEO Bancorp	$57.76 million	2.26	$16.19 million	$13.20	8.18
Columbia Banking System	$3.21 billion	2.85	$550.00 million	$2.26	13.53

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

Volatility & Risk

BEO Bancorp has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Summary

Columbia Banking System beats BEO Bancorp on 16 of the 18 factors compared between the two stocks.

About BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.

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.