Coastal Financial (NASDAQ:CCB) versus CVB Financial (NASDAQ:CVBF) Critical Review

CVB Financial (NASDAQ:CVBF) and Coastal Financial (NASDAQ:CCB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVB Financial	$648.47 million	6.21	$209.30 million	$1.52	15.01
Coastal Financial	$408.97 million	2.94	$46.99 million	$3.19	24.76

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

Insider and Institutional Ownership

74.2% of CVB Financial shares are owned by institutional investors. Comparatively, 59.2% of Coastal Financial shares are owned by institutional investors. 6.4% of CVB Financial shares are owned by insiders. Comparatively, 13.5% of Coastal Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

CVB Financial has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVB Financial	32.05%	9.16%	1.34%
Coastal Financial	7.35%	10.20%	1.01%

Analyst Recommendations

This is a summary of current ratings and price targets for CVB Financial and Coastal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	2	4	0	2.67
Coastal Financial	0	2	4	0	2.67

CVB Financial presently has a consensus price target of $24.30, indicating a potential upside of 6.49%. Coastal Financial has a consensus price target of $122.60, indicating a potential upside of 55.23%. Given Coastal Financial’s higher probable upside, analysts clearly believe Coastal Financial is more favorable than CVB Financial.

About CVB Financial

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers. The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access. Further, the company provides trust services, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

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.