Contrasting CVB Financial (NASDAQ:CVBF) and Pacific Financial (OTCMKTS:PFLC)

Pacific Financial (OTCMKTS:PFLC) and CVB Financial (NASDAQ:CVBF) are both financial services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Pacific 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
Pacific Financial	N/A	N/A	N/A	$0.45	21.27
CVB Financial	$535.26 million	4.30	$221.43 million	$1.52	10.84

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Pacific Financial and CVB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Financial	0	0	0	0	N/A
CVB Financial	0	4	1	0	2.20

CVB Financial has a consensus target price of $19.00, suggesting a potential upside of 15.29%. Given CVB Financial’s higher possible upside, analysts clearly believe CVB Financial is more favorable than Pacific Financial.

Dividends

Pacific Financial pays an annual dividend of $0.56 per share and has a dividend yield of 5.9%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.9%. Pacific Financial pays out 125.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CVB Financial pays out 52.6% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pacific Financial	N/A	N/A	N/A
CVB Financial	30.93%	10.84%	1.36%

Institutional and Insider Ownership

6.8% of Pacific Financial shares are held by institutional investors. Comparatively, 74.2% of CVB Financial shares are held by institutional investors. 18.8% of Pacific Financial shares are held by insiders. Comparatively, 6.0% of CVB Financial shares are held by 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.

Summary

CVB Financial beats Pacific Financial on 9 of the 12 factors compared between the two stocks.

About Pacific Financial

Pacific Financial Corporation operates as the bank holding company for Bank of the Pacific that provides various banking products and services in Washington and Oregon. The company offers personal and business checking, and savings accounts; certificates of deposit, individual retirement accounts, and other investment options; home loans; and auto and recreation loans, credit cards, and home equity line of credit. It also provides business and commercial loans, commercial real estate loans, and SBA guaranteed loans, as well as inventory, equipment, and working capital loans; Visa business cards; and treasury management, merchant, and online and mobile banking services. The company operates various branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Clark, Skagit, and Wahkiakum counties in the state of Washington; and in Clatsop County, Oregon. It also operates loan production offices in the communities of Burlington, Washington; Salem, Oregon; and Lake Oswego, Oregon; as well as a residential real estate mortgage department. Pacific Financial Corporation was founded in 1971 and is headquartered in Aberdeen, Washington.

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.