Cathay General Bancorp (NASDAQ:CATY – Get Free Report) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Cathay General Bancorp to similar companies based on the strength of its institutional ownership, profitability, risk, analyst recommendations, dividends, valuation and earnings.
Dividends
Cathay General Bancorp pays an annual dividend of $1.52 per share and has a dividend yield of 2.3%. Cathay General Bancorp pays out 28.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend.
Risk and Volatility
Cathay General Bancorp has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Cathay General Bancorp’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cathay General Bancorp and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Cathay General Bancorp | $914.61 million | $315.12 million | 12.06 |
| Cathay General Bancorp Competitors | $37.93 billion | $2.42 billion | 21.33 |
Cathay General Bancorp’s peers have higher revenue and earnings than Cathay General Bancorp. Cathay General Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
75.0% of Cathay General Bancorp shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 4.5% of Cathay General Bancorp shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Cathay General Bancorp and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cathay General Bancorp | 25.32% | 12.14% | 1.48% |
| Cathay General Bancorp Competitors | 15.64% | 9.43% | 0.93% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Cathay General Bancorp and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cathay General Bancorp | 1 | 5 | 1 | 0 | 2.00 |
| Cathay General Bancorp Competitors | 7492 | 30243 | 27843 | 1488 | 2.35 |
Cathay General Bancorp presently has a consensus price target of $62.25, suggesting a potential downside of 4.74%. As a group, “Banks” companies have a potential upside of 14.58%. Given Cathay General Bancorp’s peers stronger consensus rating and higher probable upside, analysts clearly believe Cathay General Bancorp has less favorable growth aspects than its peers.
Summary
Cathay General Bancorp peers beat Cathay General Bancorp on 9 of the 15 factors compared.
About Cathay General Bancorp
Cathay General Bancorp is a bank holding company whose principal subsidiary is Cathay Bank. Founded in Los Angeles in 1962, Cathay Bank initially served the Chinese American community and has since expanded its customer base and operations. The bank provides commercial and consumer banking services, including deposit accounts, business and personal loans, residential mortgage lending, and cash-management and trade-finance services. Customers can also access banking through digital channels. Cathay Bank serves individuals and businesses across several U.S. states, with a presence in markets including California, New York, Illinois, Texas, and Washington.
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