CVB Financial (NASDAQ:CVBF – Get Free Report) and Avidbank (OTCMKTS:AVBH – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Valuation and Earnings
This table compares CVB Financial and Avidbank”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVB Financial | $684.59 million | 3.95 | $200.72 million | $1.46 | 13.53 |
| Avidbank | $47.45 million | 6.13 | $21.01 million | ($1.82) | -14.59 |
Profitability
This table compares CVB Financial and Avidbank’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% |
| Avidbank | 14.31% | N/A | N/A |
Insider and Institutional Ownership
74.2% of CVB Financial shares are owned by institutional investors. Comparatively, 15.9% of Avidbank shares are owned by institutional investors. 6.1% of CVB Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
CVB Financial has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Avidbank has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for CVB Financial and Avidbank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVB Financial | 0 | 3 | 2 | 0 | 2.40 |
| Avidbank | 0 | 0 | 1 | 0 | 3.00 |
CVB Financial currently has a consensus price target of $23.88, suggesting a potential upside of 20.82%. Avidbank has a consensus price target of $25.00, suggesting a potential downside of 5.84%. Given CVB Financial’s higher possible upside, analysts plainly believe CVB Financial is more favorable than Avidbank.
Summary
CVB Financial beats Avidbank on 12 of the 14 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 Avidbank
Avidbank Holdings, Inc. operates as a bank holding company for Avidbank that provides financial products and services to businesses and individuals in the Santa Clara, San Mateo, and San Francisco counties. The company offers business and personal deposit products, such as checking, money market, and savings accounts; and certificates of deposit. It also provides personal lending products, including secured and unsecured lines of credit, home equity lines of credit, remodel and new home construction loans, and term loans; corporate banking comprising working capital lines of credit, equipment loans, acquisition financing, shareholder buyouts, ESOP loans, and owner-occupied real estate loans; and commercial real estate lending, such as permanent loans and bridge financing products. In addition, the company offers construction lending products, including land acquisition loans, pre-development loans, construction spec SFD, owner-occupied SFD, condominiums, subdivision, unsecured business lines, real estate bridge loans, and RLOC real estate secured loans. Further, it provides various financing solutions, such as fund finance, structured finance, venture lending, asset-based lending, and sponsor finance. Additionally, the company offers various services, such as automated clearing house payments and collections, bill pay, positive pay, wire transfer, lockbox, merchant, remote deposit capture, risk and fraud analytics services, ATM/debit cards, credit cards, business courier, cash management, and complimentary notary services. Furthermore, it offers online and mobile banking services. The company was founded in 2003 and is headquartered in San Jose, California.
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