East West Bancorp (NASDAQ:EWBC) and Cambridge Bancorp (NASDAQ:CATC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
This is a summary of recent ratings and target prices for East West Bancorp and Cambridge Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|East West Bancorp||1||1||5||0||2.57|
East West Bancorp presently has a consensus price target of $54.83, indicating a potential upside of 18.71%. Cambridge Bancorp has a consensus price target of $91.50, indicating a potential upside of 23.43%. Given Cambridge Bancorp’s higher probable upside, analysts clearly believe Cambridge Bancorp is more favorable than East West Bancorp.
Institutional & Insider Ownership
87.8% of East West Bancorp shares are held by institutional investors. Comparatively, 35.9% of Cambridge Bancorp shares are held by institutional investors. 0.6% of East West Bancorp shares are held by company insiders. Comparatively, 2.3% of Cambridge Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
East West Bancorp has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, Cambridge Bancorp has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.
Valuation & Earnings
This table compares East West Bancorp and Cambridge Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|East West Bancorp||$1.86 billion||3.61||$703.70 million||$4.66||9.91|
|Cambridge Bancorp||$102.04 million||3.52||$23.88 million||N/A||N/A|
East West Bancorp has higher revenue and earnings than Cambridge Bancorp.
This table compares East West Bancorp and Cambridge Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|East West Bancorp||31.98%||14.90%||1.64%|
East West Bancorp pays an annual dividend of $1.10 per share and has a dividend yield of 2.4%. Cambridge Bancorp pays an annual dividend of $2.04 per share and has a dividend yield of 2.8%. East West Bancorp pays out 23.6% of its earnings in the form of a dividend.
East West Bancorp beats Cambridge Bancorp on 10 of the 15 factors compared between the two stocks.
East West Bancorp Company Profile
East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States and Greater China. It operates in three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, time deposits, and individual retirement accounts. Its loan products include commercial and residential real estate, lines of credit, construction, trade finance, letters of credit, commercial business, housing loans, asset-based lending, and equipment financing, as well as financing to clients needing a financial bridge to facilitate their business transactions between the United States and Greater China. The company also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity hedging risk management services; and Internet-based services comprising online banking services. As of January 24, 2019, it operated approximately 130 locations in California, Georgia, Massachusetts, Nevada, New York, Texas, and Washington; full service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was founded in 1998 and is headquartered in Pasadena, California.
Cambridge Bancorp Company Profile
Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking and savings accounts, certificates of deposit, money market accounts, individual retirement accounts, and time and demand deposits. Its loans products include residential and commercial real estate loans; home equity lines of credit and term loans; commercial and industrial loans; secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates 10 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston; and wealth management offices in Boston, Massachusetts, as well as in Concord, Manchester, and Portsmouth, New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.
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