CoBiz Financial (NASDAQ: COBZ) and Cardinal Financial (NASDAQ:CFNL) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.
Valuation & Earnings
This table compares CoBiz Financial and Cardinal Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CoBiz Financial||$161.94 million||5.54||$34.89 million||$0.91||23.34|
Risk & Volatility
CoBiz Financial has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Cardinal Financial has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
This is a breakdown of current recommendations for CoBiz Financial and Cardinal Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CoBiz Financial presently has a consensus target price of $20.50, indicating a potential downside of 3.48%. Cardinal Financial has a consensus target price of $31.00, indicating a potential upside of 6.75%. Given Cardinal Financial’s higher possible upside, analysts clearly believe Cardinal Financial is more favorable than CoBiz Financial.
Institutional and Insider Ownership
82.9% of CoBiz Financial shares are held by institutional investors. Comparatively, 75.2% of Cardinal Financial shares are held by institutional investors. 9.9% of CoBiz Financial shares are held by company insiders. Comparatively, 6.2% of Cardinal Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares CoBiz Financial and Cardinal Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CoBiz Financial pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Cardinal Financial pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. CoBiz Financial pays out 24.2% of its earnings in the form of a dividend. Cardinal Financial pays out 35.4% 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.
CoBiz Financial beats Cardinal Financial on 9 of the 14 factors compared between the two stocks.
CoBiz Financial Company Profile
CoBiz Financial Inc. is a financial holding company. The Company provides a range of banking and related services through its subsidiaries, CoBiz Bank (Bank), CoBiz Insurance, Inc. and CoBiz IM, Inc. (CoBiz IM). The Company’s segments include Commercial Banking, Fee-Based Lines, and Corporate Support and Other. Its Commercial Banking segment consists of the operations of the Bank, a full-service business banking institution that offers commercial, real estate and private banking, as well as treasury management, interest-rate hedging and depository products. Its Fee-Based Lines segment consists of the operations of CoBiz Wealth, LLC and CoBiz Insurance, Inc. CoBiz Wealth, LLC provides investment management advisory services to individuals, families and businesses. CoBiz Insurance, Inc. offers property and casualty (P&C) and employee benefit group insurance (EB) broker agency to small to mid-sized employers, commercial enterprises and individual lines to their owners.
Cardinal Financial Company Profile
Cardinal Financial Corporation is a financial holding company. The Company owns Cardinal Bank (the Bank), a Virginia state-chartered community bank. The Bank operates in three business segments: commercial banking, mortgage banking and wealth management services. The commercial banking segment includes both commercial and consumer lending and provides customers such products as commercial loans, real estate loans, and other business financing and consumer loans. In addition, the commercial banking segment provides customers with several choices of deposit products, including demand deposit accounts, savings accounts and certificates of deposit. The mortgage banking segment is engaged in the origination and acquisition of residential mortgages for sale into the secondary market. The wealth management services segment provides investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning and investment management.
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