Analyzing Grupo Cibest (NYSE:CIB) and California BanCorp (NASDAQ:BCAL)

Grupo Cibest (NYSE:CIB) and California BanCorp (NASDAQ:BCAL) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Grupo Cibest and California BanCorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Cibest	1	5	3	0	2.22
California BanCorp	0	1	5	0	2.83

Grupo Cibest currently has a consensus target price of $90.83, indicating a potential downside of 6.20%. California BanCorp has a consensus target price of $24.50, indicating a potential upside of 14.11%. Given California BanCorp’s stronger consensus rating and higher possible upside, analysts plainly believe California BanCorp is more favorable than Grupo Cibest.

Profitability

This table compares Grupo Cibest and California BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Cibest	10.80%	20.87%	2.22%
California BanCorp	26.01%	10.44%	1.49%

Dividends

Grupo Cibest pays an annual dividend of $5.45 per share and has a dividend yield of 5.6%. California BanCorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.2%. Grupo Cibest pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. California BanCorp pays out 26.1% of its earnings in the form of a dividend.

Risk & Volatility

Grupo Cibest has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares Grupo Cibest and California BanCorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Cibest	$10.45 billion	2.20	$764.13 million	$5.13	18.88
California BanCorp	$237.07 million	2.91	$63.06 million	$1.84	11.67

Grupo Cibest has higher revenue and earnings than California BanCorp. California BanCorp is trading at a lower price-to-earnings ratio than Grupo Cibest, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

55.4% of California BanCorp shares are held by institutional investors. 8.1% of California BanCorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

California BanCorp beats Grupo Cibest on 10 of the 16 factors compared between the two stocks.

About Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.

About California BanCorp

Southern California Bancorp operates as the holding company for Bank of Southern California, N.A. that provides various financial products to individuals, professionals, and small-to medium-sized businesses. The company offers checking, personal and business savings, and money market accounts, as well as certificates of deposit. It also provides home equity lines of credit, business loans and lines of credit, commercial real estate and construction loans, small business administration loans, letters of credit, and personal and business credit cards. In addition, the company provides cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; courier service; lockbox services; and merchant services. It operates branches in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. The company was founded in 2001 and is headquartered in San Diego, California.