Financial Analysis: East West Bancorp (NASDAQ:EWBC) vs. BEO Bancorp (OTCMKTS:BEOB)

East West Bancorp (NASDAQ:EWBCGet Rating) and BEO Bancorp (OTCMKTS:BEOBGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for East West Bancorp and BEO Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
East West Bancorp 0 1 3 0 2.75
BEO Bancorp 0 0 0 0 N/A

East West Bancorp currently has a consensus target price of $89.17, indicating a potential upside of 20.17%. Given East West Bancorp’s higher probable upside, analysts plainly believe East West Bancorp is more favorable than BEO Bancorp.

Earnings and Valuation

This table compares East West Bancorp and BEO Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
East West Bancorp $1.90 billion 5.49 $872.98 million $6.56 11.31
BEO Bancorp $33.57 million 1.50 $6.92 million N/A N/A

East West Bancorp has higher revenue and earnings than BEO Bancorp.

Dividends

East West Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. BEO Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. East West Bancorp pays out 24.4% of its earnings in the form of a dividend. East West Bancorp has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

89.0% of East West Bancorp shares are held by institutional investors. 0.8% of East West Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

East West Bancorp has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, BEO Bancorp has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares East West Bancorp and BEO Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
East West Bancorp 45.32% 16.45% 1.52%
BEO Bancorp N/A N/A N/A

Summary

East West Bancorp beats BEO Bancorp on 12 of the 14 factors compared between the two stocks.

About East West Bancorp

(Get Rating)

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals. It operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. Its loan products include mortgage and home equity, commercial and residential real estate, working capital lines of credit, construction, trade finance, letters of credit, commercial business, affordable housing loans, asset-based lending, asset-backed finance, project finance, and equipment financing, as well as financing services to clients needing a financial bridge to facilitate their business transactions between the United States and China. The company also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity risk hedging services; and mobile and online banking services. As of January 27, 2022, it operated approximately 120 locations in the United States and China; full-service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was incorporated in 1998 and is headquartered in Pasadena, California.

About BEO Bancorp

(Get Rating)

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, savings, money market, time deposits, and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, farm, and refinancing loans; lines of credit; Internet banking and bill payment services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. BEO Bancorp was founded in 1945 and is based in Heppner, Oregon.

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