Glacier Bancorp (NYSE:GBCI) versus CVB Financial (NASDAQ:CVBF) Critical Comparison

Glacier Bancorp (NYSE:GBCI) and CVB Financial (NASDAQ:CVBF) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Institutional and Insider Ownership

80.2% of Glacier Bancorp shares are held by institutional investors. Comparatively, 74.2% of CVB Financial shares are held by institutional investors. 0.5% of Glacier Bancorp shares are held by company insiders. Comparatively, 6.4% of CVB Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Glacier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Glacier Bancorp pays out 61.7% of its earnings in the form of a dividend. CVB Financial pays out 52.6% 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. CVB Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Glacier Bancorp has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Glacier Bancorp	17.60%	7.19%	0.92%
CVB Financial	32.05%	9.14%	1.34%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glacier Bancorp	1	3	4	0	2.38
CVB Financial	0	1	3	0	2.75

Glacier Bancorp presently has a consensus price target of $55.17, indicating a potential upside of 13.13%. CVB Financial has a consensus price target of $24.50, indicating a potential upside of 19.45%. Given CVB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe CVB Financial is more favorable than Glacier Bancorp.

Earnings and Valuation

This table compares Glacier Bancorp and CVB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glacier Bancorp	$1.09 billion	5.84	$239.03 million	$2.14	22.79
CVB Financial	$648.47 million	4.29	$209.30 million	$1.52	13.49

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

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposit, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of junior lien mortgages, and first and junior lien lines of credit secured by owner-occupied 1-4 family residences; and agriculture loans. Further, the company provides mortgage origination and loan servicing services. It has 224 locations, including 188 branches and 36 loan or administration offices in 75 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada. The company was founded in 1955 and is headquartered in Kalispell, Montana.

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.