Columbia Banking System (NASDAQ:COLB) vs. BEO Bancorp (OTCMKTS:BEOB) Financial Review

Columbia Banking System (NASDAQ:COLB) and BEO Bancorp (OTCMKTS:BEOB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Valuation and Earnings

This table compares Columbia Banking System and BEO Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Banking System	$3.21 billion	2.85	$550.00 million	$2.26	13.53
BEO Bancorp	$57.76 million	2.26	$16.19 million	$13.20	8.18

Columbia Banking System has higher revenue and earnings than BEO Bancorp. BEO Bancorp is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.

Dividends

Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 4.8%. BEO Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Columbia Banking System pays out 65.5% of its earnings in the form of a dividend. BEO Bancorp pays out 15.2% 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. Columbia Banking System has increased its dividend for 4 consecutive years. Columbia Banking System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Columbia Banking System and BEO Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Banking System	17.11%	11.40%	1.26%
BEO Bancorp	N/A	N/A	N/A

Insider & Institutional Ownership

92.5% of Columbia Banking System shares are owned by institutional investors. 0.7% of Columbia Banking System shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Columbia Banking System has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, BEO Bancorp has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Columbia Banking System and BEO Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Banking System	0	11	3	1	2.33
BEO Bancorp	0	0	0	0	0.00

Columbia Banking System presently has a consensus price target of $32.04, suggesting a potential upside of 4.77%. Given Columbia Banking System’s stronger consensus rating and higher probable upside, equities analysts clearly believe Columbia Banking System is more favorable than BEO Bancorp.

Summary

Columbia Banking System beats BEO Bancorp on 16 of the 18 factors compared between the two stocks.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.

About BEO Bancorp

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, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.