Head-To-Head Contrast: Raiffeisen Bank International (OTCMKTS:RAIFY) & CPB (NYSE:CPF)

Raiffeisen Bank International (OTCMKTS:RAIFY) and CPB (NYSE:CPF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent ratings for Raiffeisen Bank International and CPB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raiffeisen Bank International	0	1	0	1	3.00
CPB	0	2	2	1	2.80

CPB has a consensus target price of $39.33, suggesting a potential upside of 4.53%. Given CPB’s higher probable upside, analysts clearly believe CPB is more favorable than Raiffeisen Bank International.

Profitability

This table compares Raiffeisen Bank International and CPB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raiffeisen Bank International	19.31%	10.94%	1.16%
CPB	22.52%	14.20%	1.13%

Institutional & Insider Ownership

88.4% of CPB shares are owned by institutional investors. 1.7% of CPB shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Raiffeisen Bank International pays an annual dividend of $0.27 per share and has a dividend yield of 1.5%. CPB pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Raiffeisen Bank International pays out 12.9% of its earnings in the form of a dividend. CPB pays out 38.5% 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. CPB has raised its dividend for 1 consecutive years. CPB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Raiffeisen Bank International and CPB”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raiffeisen Bank International	$14.76 billion	1.57	$1.55 billion	$2.10	8.43
CPB	$297.53 million	3.26	$77.48 million	$3.12	12.06

Raiffeisen Bank International has higher revenue and earnings than CPB. Raiffeisen Bank International is trading at a lower price-to-earnings ratio than CPB, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Raiffeisen Bank International has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, CPB has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

CPB beats Raiffeisen Bank International on 11 of the 17 factors compared between the two stocks.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.