Contrasting Pacific Financial (OTCMKTS:PFLC) & CVB Financial (NASDAQ:CVBF)

CVB Financial (NASDAQ:CVBF) and Pacific Financial (OTCMKTS:PFLC) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVB Financial	33.26%	11.50%	1.43%
Pacific Financial	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for CVB Financial and Pacific Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	4	1	0	2.20
Pacific Financial	0	0	0	0	N/A

CVB Financial currently has a consensus price target of $19.25, suggesting a potential upside of 16.60%. Given CVB Financial’s higher possible upside, equities research analysts plainly believe CVB Financial is more favorable than Pacific Financial.

Dividends

CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.8%. Pacific Financial pays an annual dividend of $0.56 per share and has a dividend yield of 5.9%. CVB Financial pays out 50.3% of its earnings in the form of a dividend. Pacific Financial pays out 125.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

74.2% of CVB Financial shares are held by institutional investors. Comparatively, 6.8% of Pacific Financial shares are held by institutional investors. 6.0% of CVB Financial shares are held by insiders. Comparatively, 18.8% of Pacific Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares CVB Financial and Pacific 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	$665.66 million	3.46	$221.43 million	$1.59	10.38
Pacific Financial	N/A	N/A	N/A	$0.45	21.27

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

Summary

CVB Financial beats Pacific Financial on 9 of the 12 factors compared between the two stocks.

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 Pacific Financial

Pacific Financial Corporation operates as the bank holding company for Bank of the Pacific that provides various banking products and services in Washington and Oregon. The company offers personal and business checking, and savings accounts; certificates of deposit, individual retirement accounts, and other investment options; home loans; and auto and recreation loans, credit cards, and home equity line of credit. It also provides business and commercial loans, commercial real estate loans, and SBA guaranteed loans, as well as inventory, equipment, and working capital loans; Visa business cards; and cash/treasury management, merchant, and online and mobile banking services. The company operates branches in the communities of Grays Harbor, Pacific, Whatcom, Clark, Skagit, and Wahkiakum counties in the state of Washington; and in Clatsop County, Oregon. It also operates loan production offices in the communities of Burlington, Washington and Salem and Eugene, Oregon. Pacific Financial Corporation was founded in 1971 and is headquartered in Aberdeen, Washington.