Cathay General Bancorp (NASDAQ:CATY) versus Coastal Financial (NASDAQ:CCB) Head to Head Comparison

Cathay General Bancorp (NASDAQ:CATY) and Coastal Financial (NASDAQ:CCB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings & Valuation

This table compares Cathay General Bancorp and Coastal Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cathay General Bancorp	$781.55 million	4.03	$285.98 million	$4.33	10.53
Coastal Financial	$703.32 million	2.31	$45.22 million	$3.16	34.09

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Cathay General Bancorp and Coastal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cathay General Bancorp	1	3	2	0	2.17
Coastal Financial	0	1	5	1	3.00

Cathay General Bancorp presently has a consensus target price of $50.60, suggesting a potential upside of 10.99%. Coastal Financial has a consensus target price of $116.20, suggesting a potential upside of 7.86%. Given Cathay General Bancorp’s higher possible upside, analysts clearly believe Cathay General Bancorp is more favorable than Coastal Financial.

Volatility & Risk

Cathay General Bancorp has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

75.0% of Cathay General Bancorp shares are held by institutional investors. Comparatively, 59.2% of Coastal Financial shares are held by institutional investors. 4.9% of Cathay General Bancorp shares are held by insiders. Comparatively, 14.1% of Coastal Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cathay General Bancorp and Coastal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cathay General Bancorp	22.26%	10.60%	1.30%
Coastal Financial	7.14%	10.60%	1.11%

Summary

Cathay General Bancorp beats Coastal Financial on 8 of the 14 factors compared between the two stocks.

About Cathay General Bancorp

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.