Contrasting Peoples Financial (OTCMKTS:PFBX) and CVB Financial (NASDAQ:CVBF)

Peoples Financial (OTCMKTS:PFBXGet Rating) and CVB Financial (NASDAQ:CVBFGet Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Dividends

Peoples Financial pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. CVB Financial pays an annual dividend of $0.76 per share and has a dividend yield of 2.9%. Peoples Financial pays out 15.8% of its earnings in the form of a dividend. CVB Financial pays out 52.4% 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. Peoples Financial has increased its dividend for 2 consecutive years and CVB Financial has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Peoples Financial and CVB Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peoples Financial $26.76 million 2.77 $8.58 million $1.14 13.90
CVB Financial $468.02 million 7.95 $212.52 million $1.45 18.35

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

Insider and Institutional Ownership

12.7% of Peoples Financial shares are held by institutional investors. Comparatively, 72.6% of CVB Financial shares are held by institutional investors. 28.1% of Peoples Financial shares are held by company insiders. Comparatively, 5.4% of CVB Financial shares are held 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.

Volatility and Risk

Peoples Financial has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Peoples Financial and CVB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peoples Financial 0 0 0 0 N/A
CVB Financial 0 0 0 0 N/A

CVB Financial has a consensus target price of $26.00, indicating a potential downside of 2.29%. Given CVB Financial’s higher probable upside, analysts clearly believe CVB Financial is more favorable than Peoples Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Peoples Financial 19.72% 6.87% 0.63%
CVB Financial 40.88% 9.85% 1.22%

Summary

CVB Financial beats Peoples Financial on 11 of the 15 factors compared between the two stocks.

About Peoples Financial

(Get Rating)

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. It accepts various deposits, such as interest and non-interest bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). The company also offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, it provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, the company offers various other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and internet banking services. As of December 31, 2021, the company operated through 17 branches located in Harrison, Hancock, Jackson, and Stone counties. It also has 28 automated teller machines at its branch locations, as well as other off-site and non-proprietary locations. The company was founded in 1896 and is headquartered in Biloxi, Mississippi.

About CVB Financial

(Get Rating)

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 through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. As of December 31, 2021, it operated 58 banking centers located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California; and three trust offices located in Ontario, Newport Beach, and Pasadena, as well as two loan production offices in California's Central Valley and the Sacramento area. The company was founded in 1974 and is headquartered in Ontario, California.

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