Head to Head Comparison: City Bank (OTCMKTS:CTBK) versus CVB Financial (NASDAQ:CVBF)

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

Institutional & Insider Ownership

74.2% of CVB Financial shares are held by institutional investors. 6.1% of CVB Financial shares are held by insiders. Comparatively, 37.5% of City Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVB Financial	31.95%	9.18%	1.33%
City Bank	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	2	2	0	2.50
City Bank	0	0	0	0	0.00

CVB Financial currently has a consensus target price of $24.33, indicating a potential upside of 21.39%. Given CVB Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe CVB Financial is more favorable than City Bank.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVB Financial	$488.69 million	5.61	$200.72 million	$1.46	13.73
City Bank	N/A	N/A	N/A	N/A	N/A

CVB Financial has higher revenue and earnings than City Bank.

Summary

CVB Financial beats City Bank on 8 of the 9 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 City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.