CVB Financial (NASDAQ:CVBF – Get Free Report) and Plumas Bancorp (NASDAQ:PLBC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares CVB Financial and Plumas Bancorp’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% |
| Plumas Bancorp | 25.80% | 16.52% | 1.89% |
Dividends
CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. Plumas Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. CVB Financial pays out 54.8% of its earnings in the form of a dividend. Plumas Bancorp pays out 28.1% 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. Plumas Bancorp has raised its dividend for 1 consecutive years.
Volatility and Risk
Analyst Recommendations
This is a breakdown of recent ratings and price targets for CVB Financial and Plumas Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVB Financial | 0 | 2 | 2 | 0 | 2.50 |
| Plumas Bancorp | 0 | 0 | 4 | 0 | 3.00 |
CVB Financial currently has a consensus price target of $24.33, suggesting a potential upside of 30.54%. Plumas Bancorp has a consensus price target of $57.00, suggesting a potential upside of 34.34%. Given Plumas Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Plumas Bancorp is more favorable than CVB Financial.
Institutional and Insider Ownership
74.2% of CVB Financial shares are held by institutional investors. Comparatively, 41.7% of Plumas Bancorp shares are held by institutional investors. 6.1% of CVB Financial shares are held by insiders. Comparatively, 9.0% of Plumas 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.
Valuation and Earnings
This table compares CVB Financial and Plumas Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVB Financial | $488.69 million | 5.26 | $200.72 million | $1.46 | 12.77 |
| Plumas Bancorp | $90.58 million | 3.26 | $28.62 million | $4.27 | 9.94 |
CVB Financial has higher revenue and earnings than Plumas Bancorp. Plumas Bancorp is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Plumas Bancorp beats CVB Financial on 9 of the 16 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 Plumas Bancorp
Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.
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