CPB (NYSE:CPF) & Riverview Bancorp (NASDAQ:RVSB) Critical Survey

CPB (NYSE:CPF) and Riverview Bancorp (NASDAQ:RVSB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Dividends

CPB pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. CPB pays out 36.3% of its earnings in the form of a dividend. Riverview Bancorp pays out -57.1% 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 increased its dividend for 1 consecutive years. CPB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

CPB has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

88.4% of CPB shares are held by institutional investors. Comparatively, 69.6% of Riverview Bancorp shares are held by institutional investors. 1.7% of CPB shares are held by company insiders. Comparatively, 3.9% of Riverview Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares CPB and Riverview Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPB	23.69%	14.75%	1.17%
Riverview Bancorp	-4.46%	3.76%	0.38%

Earnings & Valuation

This table compares CPB and Riverview Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPB	$365.98 million	2.69	$77.48 million	$3.31	11.69
Riverview Bancorp	$46.66 million	2.61	-$4.34 million	($0.14)	-43.57

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

Analyst Ratings

This is a breakdown of current ratings for CPB and Riverview Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	3	2	1	2.67
Riverview Bancorp	1	1	1	0	2.00

CPB currently has a consensus price target of $40.33, suggesting a potential upside of 4.27%. Given CPB’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CPB is more favorable than Riverview Bancorp.

Summary

CPB beats Riverview Bancorp on 16 of the 18 factors compared between the two stocks.

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.

About Riverview Bancorp

Riverview Bancorp, Inc. operates as a bank holding company for Riverview Bank that provides commercial banking services to small and medium size businesses, professionals, and wealth building individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial and residential real estate, multi-family real estate, land, real estate construction, and one-to-four family mortgage loans; other consumer loans, such as automobile, boat, motorcycle, recreational vehicle, savings account, and unsecured loans; and home equity lines of credit. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management. The company operates in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, Ridgefield, and Vancouver, Washington, as well as Portland, Gresham, Tualatin, and Aumsville, Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.