CVB Financial (NASDAQ:CVBF) & Hanmi Financial (NASDAQ:HAFC) Head-To-Head Review

CVB Financial (NASDAQ:CVBF) and Hanmi Financial (NASDAQ:HAFC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

CVB Financial has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Hanmi Financial has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Dividends

CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Hanmi Financial pays an annual dividend of $1.12 per share and has a dividend yield of 4.1%. CVB Financial pays out 53.3% of its earnings in the form of a dividend. Hanmi Financial pays out 44.6% 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. Hanmi Financial has increased its dividend for 1 consecutive years. Hanmi Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares CVB Financial and Hanmi Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVB Financial	$648.47 million	4.18	$209.30 million	$1.50	13.32
Hanmi Financial	$444.90 million	1.84	$76.09 million	$2.51	10.86

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

Analyst Ratings

This is a summary of recent ratings for CVB Financial and Hanmi Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVB Financial	0	2	2	0	2.50
Hanmi Financial	0	3	2	0	2.40

CVB Financial presently has a consensus price target of $24.17, suggesting a potential upside of 20.95%. Hanmi Financial has a consensus price target of $31.33, suggesting a potential upside of 14.94%. Given CVB Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe CVB Financial is more favorable than Hanmi Financial.

Institutional and Insider Ownership

74.2% of CVB Financial shares are owned by institutional investors. Comparatively, 88.7% of Hanmi Financial shares are owned by institutional investors. 6.1% of CVB Financial shares are owned by insiders. Comparatively, 1.9% of Hanmi Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CVB Financial and Hanmi Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVB Financial	32.28%	9.30%	1.36%
Hanmi Financial	17.10%	9.85%	0.97%

Summary

CVB Financial beats Hanmi 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 Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.