CVB Financial (NASDAQ:CVBF – Get Free Report) and FS Bancorp (NASDAQ:FSBW – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares CVB Financial and FS Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVB Financial | 32.05% | 9.16% | 1.34% |
| FS Bancorp | 14.91% | 10.88% | 1.04% |
Insider and Institutional Ownership
74.2% of CVB Financial shares are held by institutional investors. Comparatively, 63.9% of FS Bancorp shares are held by institutional investors. 6.4% of CVB Financial shares are held by insiders. Comparatively, 12.9% of FS Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVB Financial | 0 | 2 | 3 | 0 | 2.60 |
| FS Bancorp | 0 | 1 | 1 | 0 | 2.50 |
CVB Financial presently has a consensus target price of $24.13, suggesting a potential upside of 7.41%. FS Bancorp has a consensus target price of $46.00, suggesting a potential upside of 7.73%. Given FS Bancorp’s higher probable upside, analysts clearly believe FS Bancorp is more favorable than CVB Financial.
Dividends
CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. FS Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 2.7%. CVB Financial pays out 52.6% of its earnings in the form of a dividend. FS Bancorp pays out 27.0% 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. FS Bancorp has increased its dividend for 12 consecutive years.
Earnings and Valuation
This table compares CVB Financial and FS Bancorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVB Financial | $648.47 million | 6.11 | $209.30 million | $1.52 | 14.78 |
| FS Bancorp | $219.52 million | 1.05 | $33.35 million | $4.29 | 9.95 |
CVB Financial has higher revenue and earnings than FS Bancorp. FS Bancorp is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CVB Financial has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, FS Bancorp has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Summary
CVB Financial beats FS Bancorp on 10 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 FS Bancorp
FS Bancorp, Inc. operates as a bank holding company for 1st Security Bank of Washington that provides banking and financial services to local families, local and regional businesses, and industry niches. The company operates in two segments, Commercial and Consumer Banking; and Home Lending. It offers various deposit instruments, including checking accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company provides one-to-four-family residential first mortgages, second mortgage/home equity loan products, non-mortgage commercial business loans, commercial real estate loans, and construction and development loans, as well as consumer loans, which primarily include personal lines of credit, credit cards, automobile, direct home improvement, loans on deposit, and recreational loans. It operates full bank service branches and home loan production offices in suburban communities in the greater Puget Sound area, including Snohomish, King, Pierce, Jefferson, Kitsap, Clallam, Grays Harbor, and Thurston counties; and a loan production office in the market area of the Tri-Cities. FS Bancorp, Inc. was founded in 1936 and is headquartered in Mountlake Terrace, Washington.
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