CVB Financial (NASDAQ:CVBF) vs. Northrim BanCorp (NASDAQ:NRIM) Head to Head Survey

Northrim BanCorp (NASDAQ:NRIM) and CVB Financial (NASDAQ:CVBF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 74.2% of CVB Financial shares are owned by institutional investors. 2.4% of Northrim BanCorp shares are owned by insiders. Comparatively, 6.4% of CVB Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Northrim BanCorp has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares Northrim BanCorp and CVB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$255.58 million	2.09	$64.61 million	$2.47	9.71
CVB Financial	$648.47 million	6.09	$209.30 million	$1.51	14.97

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

Analyst Recommendations

This is a summary of current ratings and price targets for Northrim BanCorp and CVB Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	2	2	0	2.50
CVB Financial	0	1	4	0	2.80

Northrim BanCorp presently has a consensus price target of $29.50, indicating a potential upside of 23.04%. CVB Financial has a consensus price target of $26.50, indicating a potential upside of 17.20%. Given Northrim BanCorp’s higher probable upside, research analysts clearly believe Northrim BanCorp is more favorable than CVB Financial.

Dividends

Northrim BanCorp pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. Northrim BanCorp pays out 27.5% of its earnings in the form of a dividend. CVB Financial pays out 53.0% 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. Northrim BanCorp has raised its dividend for 16 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	22.02%	16.01%	1.60%
CVB Financial	29.54%	9.42%	1.41%

Summary

CVB Financial beats Northrim BanCorp on 10 of the 17 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp is a bank holding company headquartered in Anchorage, Alaska, and the parent company of Northrim Bank. The bank was established in 1990 and serves individuals, businesses and organizations across Alaska. Northrim Bank provides commercial and consumer banking services, including deposit accounts, business and personal loans, mortgage lending, cash management and online banking. Its commercial offerings include financing for businesses and commercial real estate. The company also provides services such as equipment financing and invoice factoring through affiliated businesses.

About CVB Financial

CVB Financial Corporation is the bank holding company for Citizens Business Bank, a California-based financial institution founded in 1974. The bank serves businesses, professionals, individuals and nonprofit organizations, with a strong presence in Southern California and operations in other parts of the state. Citizens Business Bank provides commercial and small-business banking, including deposit accounts, business loans, commercial real estate financing and cash-management services. It also offers personal banking and trust and wealth-management services.