TriCo Bancshares (NASDAQ:TCBK – Get Free Report) and Cathay General Bancorp (NASDAQ:CATY – 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 profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Institutional & Insider Ownership
59.1% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 75.0% of Cathay General Bancorp shares are owned by institutional investors. 4.9% of TriCo Bancshares shares are owned by company insiders. Comparatively, 4.5% of Cathay General Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares TriCo Bancshares and Cathay General Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TriCo Bancshares | 23.71% | 9.87% | 1.30% |
| Cathay General Bancorp | 23.79% | 11.37% | 1.38% |
Dividends
Earnings and Valuation
This table compares TriCo Bancshares and Cathay General Bancorp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TriCo Bancshares | $421.16 million | 3.96 | $121.56 million | $3.95 | 13.24 |
| Cathay General Bancorp | $844.88 million | 4.72 | $315.12 million | $4.85 | 12.27 |
Cathay General Bancorp has higher revenue and earnings than TriCo Bancshares. Cathay General Bancorp is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for TriCo Bancshares and Cathay General Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TriCo Bancshares | 0 | 3 | 4 | 0 | 2.57 |
| Cathay General Bancorp | 1 | 3 | 1 | 0 | 2.00 |
TriCo Bancshares currently has a consensus target price of $54.60, suggesting a potential upside of 4.38%. Cathay General Bancorp has a consensus target price of $51.75, suggesting a potential downside of 13.01%. Given TriCo Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe TriCo Bancshares is more favorable than Cathay General Bancorp.
Risk & Volatility
TriCo Bancshares has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Cathay General Bancorp has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Summary
Cathay General Bancorp beats TriCo Bancshares on 10 of the 17 factors compared between the two stocks.
About TriCo Bancshares
TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.
About Cathay General Bancorp
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.
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