Critical Survey: TriCo Bancshares (NASDAQ:TCBK) versus CVB Financial (NASDAQ:CVBF)

TriCo Bancshares (NASDAQ:TCBK) and CVB Financial (NASDAQ:CVBF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TriCo Bancshares	21.87%	9.37%	1.19%
CVB Financial	31.95%	9.18%	1.33%

Dividends

TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. TriCo Bancshares pays out 40.4% of its earnings in the form of a dividend. CVB Financial pays out 54.8% 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. TriCo Bancshares has raised its dividend for 12 consecutive years.

Earnings and Valuation

This table compares TriCo Bancshares and CVB Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriCo Bancshares	$394.54 million	3.57	$114.87 million	$3.56	12.15
CVB Financial	$684.59 million	3.84	$200.72 million	$1.46	13.06

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

Volatility & Risk

TriCo Bancshares has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

59.1% of TriCo Bancshares shares are held by institutional investors. Comparatively, 74.2% of CVB Financial shares are held by institutional investors. 4.8% of TriCo Bancshares shares are held by company insiders. Comparatively, 6.1% of CVB Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for TriCo Bancshares and CVB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriCo Bancshares	0	4	3	0	2.43
CVB Financial	0	2	2	0	2.50

TriCo Bancshares presently has a consensus price target of $47.80, suggesting a potential upside of 10.49%. CVB Financial has a consensus price target of $24.33, suggesting a potential upside of 27.60%. Given CVB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe CVB Financial is more favorable than TriCo Bancshares.

Summary

CVB Financial beats TriCo Bancshares on 12 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 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.