CVB Financial (NASDAQ:CVBF – Get Free Report) and Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Risk and Volatility
CVB Financial has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bank of Long Beach has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for CVB Financial and Farmers & Merchants Bank of Long Beach, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVB Financial | 0 | 2 | 2 | 0 | 2.50 |
| Farmers & Merchants Bank of Long Beach | 0 | 0 | 0 | 0 | 0.00 |
Valuation & Earnings
This table compares CVB Financial and Farmers & Merchants Bank of Long Beach”s 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 | 3.93 | $209.30 million | $1.50 | 12.53 |
| Farmers & Merchants Bank of Long Beach | $449.19 million | 2.21 | $68.35 million | $538.20 | 15.40 |
CVB Financial has higher revenue and earnings than Farmers & Merchants Bank of Long Beach. CVB Financial is trading at a lower price-to-earnings ratio than Farmers & Merchants Bank of Long Beach, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CVB Financial and Farmers & Merchants Bank of Long Beach’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVB Financial | 32.28% | 9.25% | 1.35% |
| Farmers & Merchants Bank of Long Beach | 15.22% | 4.89% | 0.59% |
Dividends
CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 1.4%. CVB Financial pays out 53.3% of its earnings in the form of a dividend. Farmers & Merchants Bank of Long Beach pays out 20.8% 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.
Insider and Institutional Ownership
74.2% of CVB Financial shares are owned by institutional investors. Comparatively, 7.6% of Farmers & Merchants Bank of Long Beach shares are owned by institutional investors. 6.1% of CVB Financial shares are owned by company insiders. Comparatively, 12.8% of Farmers & Merchants Bank of Long Beach shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
CVB Financial beats Farmers & Merchants Bank of Long Beach on 12 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 Farmers & Merchants Bank of Long Beach
Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was founded in 1907 and is headquartered in Long Beach, California.
Receive News & Ratings for CVB Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CVB Financial and related companies with MarketBeat.com's FREE daily email newsletter.
