Contrasting First National Bank Alaska (OTCMKTS:FBAK) & CVB Financial (NASDAQ:CVBF)

First National Bank Alaska (OTCMKTS:FBAK) and CVB Financial (NASDAQ:CVBF) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Insider & Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations for First National Bank Alaska and CVB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
CVB Financial	0	1	3	0	2.75

CVB Financial has a consensus price target of $24.50, suggesting a potential upside of 24.97%. Given CVB Financial’s stronger consensus rating and higher probable upside, analysts clearly believe CVB Financial is more favorable than First National Bank Alaska.

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 4.7%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.1%. First National Bank Alaska pays out 62.6% of its earnings in the form of a dividend. CVB Financial pays out 52.6% 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.

Risk and Volatility

First National Bank Alaska has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares First National Bank Alaska and CVB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$265.67 million	4.03	$77.54 million	$25.56	13.23
CVB Financial	$520.90 million	5.11	$209.30 million	$1.52	12.90

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

Profitability

This table compares First National Bank Alaska and CVB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	30.01%	14.23%	1.59%
CVB Financial	32.05%	9.16%	1.34%

Summary

CVB Financial beats First National Bank Alaska on 11 of the 16 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

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.