CVB Financial (NASDAQ:CVBF – Get Free Report) and AmeriServ Financial (NASDAQ:ASRV – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Risk and Volatility
CVB Financial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, AmeriServ Financial has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.
Profitability
This table compares CVB Financial and AmeriServ Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVB Financial | 29.02% | 9.21% | 1.36% |
| AmeriServ Financial | 9.51% | 7.13% | 0.58% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVB Financial | 0 | 1 | 4 | 0 | 2.80 |
| AmeriServ Financial | 0 | 0 | 1 | 0 | 3.00 |
CVB Financial presently has a consensus target price of $26.25, indicating a potential upside of 15.64%. Given CVB Financial’s higher probable upside, analysts plainly believe CVB Financial is more favorable than AmeriServ Financial.
Valuation & Earnings
This table compares CVB Financial and AmeriServ Financial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVB Financial | $648.47 million | 6.16 | $209.30 million | $1.45 | 15.66 |
| AmeriServ Financial | $88.34 million | 0.92 | $5.61 million | $0.51 | 9.39 |
CVB Financial has higher revenue and earnings than AmeriServ Financial. AmeriServ 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.
Institutional and Insider Ownership
74.2% of CVB Financial shares are held by institutional investors. Comparatively, 31.5% of AmeriServ Financial shares are held by institutional investors. 6.4% of CVB Financial shares are held by insiders. Comparatively, 7.9% of AmeriServ Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. AmeriServ Financial pays an annual dividend of $0.12 per share and has a dividend yield of 2.5%. CVB Financial pays out 55.2% of its earnings in the form of a dividend. AmeriServ Financial pays out 23.5% 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.
Summary
CVB Financial beats AmeriServ Financial on 13 of the 16 factors compared between the two stocks.
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.
About AmeriServ Financial
AmeriServ Financial, Inc. is a holding company, which engages in the provision of consumer, mortgage and commercial financial products and services through its subsidiary. It operates through the following segments: Community Banking, Wealth Management, and Investment or Parent. The Community Banking segment includes both retail and commercial banking activities. The Wealth Management segment involves in the operations of a Trust Company, West Chester Capital Advisors an investment advisory firm, and Financial Services. The Investment or Parent segment offers investment securities, borrowing activities, and general corporate expenses. The company was founded in January 1983 and is headquartered in Johnstown, PA.
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