Cathay General Bancorp (NASDAQ: CATY) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it weigh in compared to its competitors? We will compare Cathay General Bancorp to related companies based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Earnings & Valuation

This table compares Cathay General Bancorp and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cathay General Bancorp $475.33 million N/A 16.74
Cathay General Bancorp Competitors $678.45 million $169.32 million 12.28

Cathay General Bancorp’s competitors have higher revenue and earnings than Cathay General Bancorp. Cathay General Bancorp is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Cathay General Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cathay General Bancorp 35.30% 10.54% 1.36%
Cathay General Bancorp Competitors 14.79% -27.48% 0.87%

Dividends

Cathay General Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Cathay General Bancorp pays out 34.6% of its earnings in the form of a dividend. As a group, “Retail & Mortgage Banks” companies pay a dividend yield of 1.6% and pay out 28.7% of their earnings in the form of a dividend.

Risk and Volatility

Cathay General Bancorp has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Cathay General Bancorp’s competitors have a beta of 0.83, suggesting that their average share price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

67.8% of Cathay General Bancorp shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Retail & Mortgage Banks” companies are owned by institutional investors. 5.8% of Cathay General Bancorp shares are owned by company insiders. Comparatively, 12.9% of shares of all “Retail & Mortgage Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Cathay General Bancorp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cathay General Bancorp 0 3 3 0 2.50
Cathay General Bancorp Competitors 108 444 478 12 2.38

Cathay General Bancorp currently has a consensus price target of $40.83, indicating a potential upside of 0.38%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 28.02%. Given Cathay General Bancorp’s competitors higher possible upside, analysts plainly believe Cathay General Bancorp has less favorable growth aspects than its competitors.

Summary

Cathay General Bancorp beats its competitors on 9 of the 14 factors compared.

About Cathay General Bancorp

Cathay General Bancorp is a bank holding company. The Company holds Cathay Bank, a California state-chartered commercial bank (the Bank); seven limited partnerships investing in affordable housing investments; GBC Venture Capital, Inc., and Asia Realty Corp. The Company also owns the common stock of five statutory business trusts created for issuing capital securities. The Bank primarily services individuals, professionals and small to medium-sized businesses in the local markets and provides commercial mortgage loans, commercial loans, small business administration (SBA) loans, residential mortgage loans, real estate construction loans, home equity lines of credit and installment loans to individuals for automobile, household and other consumer expenditures. The Bank offers passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of deposit and public funds deposits.

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