CIT Group (NYSE:CIT) and Pacific Valley Bank (OTCMKTS:PVBK) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Earnings and Valuation
This table compares CIT Group and Pacific Valley Bank’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CIT Group||$3.29 billion||1.19||$529.90 million||$5.06||7.84|
|Pacific Valley Bank||$14.88 million||2.33||$2.68 million||N/A||N/A|
This is a breakdown of current ratings and price targets for CIT Group and Pacific Valley Bank, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Valley Bank||0||0||0||0||N/A|
CIT Group currently has a consensus price target of $35.83, suggesting a potential downside of 9.72%. Given CIT Group’s higher possible upside, equities research analysts plainly believe CIT Group is more favorable than Pacific Valley Bank.
Volatility and Risk
CIT Group has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Pacific Valley Bank has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.
This table compares CIT Group and Pacific Valley Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Valley Bank||18.38%||N/A||N/A|
Insider and Institutional Ownership
90.5% of CIT Group shares are held by institutional investors. 0.7% of CIT Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
CIT Group beats Pacific Valley Bank on 7 of the 12 factors compared between the two stocks.
About CIT Group
CIT Group Inc. operates as the holding company for CIT Bank, N.A. that provides banking and related services to commercial and individual customers. The company operates through Commercial Banking and Consumer Banking segments. The Commercial Banking segment provides a range of commercial lending, leasing, and deposit products; loans comprising revolving lines of credit, term loans, unsecured loans, collateral-backed loans, asset-based loans, commercial real estate loans, and cash flow loans; and ancillary services and products, including cash management, capital markets, and advisory services primarily to small and middle market companies. This segment also offers asset management, factoring, receivable management, and secured financing services; supply chain financing, leasing and equipment financing to small businesses and middle market, and railroads and shippers. The Consumer Banking segment provides checking, savings, money market, and individual retirement accounts; time deposits and certificates of deposit; residential mortgage loans; small business administration loans; payment solutions; and fiduciary services. The company also offers leasing and advisory, and online banking services. It operates through a network of approximately 60 branches located in southern California. CIT Group Inc. was founded in 1908 and is based in New York, New York.
About Pacific Valley Bank
Pacific Valley Bank provides personal and business banking products and services in the United States. The company offers checking, savings, money market, and individual retirement accounts, as well as certificates of deposit. It also provides consumer loans; business loans, such as commercial or agriculture lines of credit, commercial or agriculture terms loans, commercial constructions loans, agriculture production loans, and government guaranteed loan programs; debit cards; and online and mobile banking, bill pay, remote deposit capture, and other services, as well as e-statements and order checks. The company serves small and middle-market businesses, professionals, high net worth individuals, and families. It operates three branch locations in Salinas, Monterey, and King City, California. Pacific Valley Bank was founded in 2004 and is based in Salinas, California.
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