Analyzing MISSION VY BANC/SH (OTCMKTS:MVLY) and CVB Financial (OTCMKTS:CVBF)

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

Risk & Volatility

CVB Financial has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, MISSION VY BANC/SH has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CVB Financial and MISSION VY BANC/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVB Financial 0 3 1 0 2.25
MISSION VY BANC/SH 0 0 0 0 N/A

CVB Financial presently has a consensus target price of $24.33, indicating a potential upside of 19.46%. Given CVB Financial’s higher possible upside, equities analysts plainly believe CVB Financial is more favorable than MISSION VY BANC/SH.

Valuation & Earnings

This table compares CVB Financial and MISSION VY BANC/SH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVB Financial $405.34 million 7.04 $152.00 million $1.24 16.43
MISSION VY BANC/SH N/A N/A $3.20 million N/A N/A

CVB Financial has higher revenue and earnings than MISSION VY BANC/SH.

Institutional & Insider Ownership

63.8% of CVB Financial shares are owned by institutional investors. Comparatively, 8.5% of MISSION VY BANC/SH shares are owned by institutional investors. 5.5% of CVB Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

CVB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. MISSION VY BANC/SH pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. CVB Financial pays out 58.1% of its earnings in the form of a dividend. CVB Financial has raised its dividend for 5 consecutive years. CVB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares CVB Financial and MISSION VY BANC/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVB Financial 37.39% 10.16% 1.59%
MISSION VY BANC/SH N/A N/A N/A

Summary

CVB Financial beats MISSION VY BANC/SH on 12 of the 13 factors compared between the two stocks.

CVB Financial Company Profile

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides banking and financial products and services. The company offers checking, savings, and money market accounts, as well as time certificates of deposit; and serves as a federal tax depository for business customers. It also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; 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 that are secured by owner-occupied and investor owned properties; 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, the company offers various specialized services, such as cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, payroll services, remote deposit capture, electronic funds transfer, and online account access. Further, it provides trust and investment-related services to customers through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. The company's customers consist primarily of small to mid-sized businesses and individuals 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. As of December 31, 2018, the company operated 68 banking centers and 3 trust office locations. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

MISSION VY BANC/SH Company Profile

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank that provides various banking services to individuals and corporate customers. The company's deposit products include non-interest bearing and interest-bearing demand deposits, and time deposits; and savings, NOW, exchange, escrow, checking, money market, health savings, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises personal loans; accounts receivable, apartment, and automobile and truck financing; and commercial real estate, equipment, small business administration, and term loans, as well as credit and debit cards, credit lines, and letters of credit. The company also provides merchant bankcard, account reconciliation, cashier checks, cash management, collection, deposit courier, electronic tax payment, safe deposit box, zero balance accounting, night drop, notary, payment, payroll, insurance and investment, and online banking services. It operates two branches located in Sun Valley and Santa Clarita, California. The company was founded in 2001 and is based in Sun Valley, California.

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