Financial Survey: Village Bank and Trust Financial (VBFC) versus CVB Financial (CVBF)

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

Profitability

This table compares Village Bank and Trust Financial and CVB Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Village Bank and Trust Financial 11.05% 8.59% 0.60%
CVB Financial 37.50% 10.45% 1.54%

Risk and Volatility

Village Bank and Trust Financial has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

4.8% of Village Bank and Trust Financial shares are held by institutional investors. Comparatively, 64.8% of CVB Financial shares are held by institutional investors. 53.2% of Village Bank and Trust Financial shares are held by insiders. Comparatively, 6.9% of CVB Financial shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Village Bank and Trust Financial and CVB Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Village Bank and Trust Financial 0 0 0 0 N/A
CVB Financial 0 4 1 0 2.20

CVB Financial has a consensus price target of $24.38, suggesting a potential upside of 11.91%. Given CVB Financial’s higher probable upside, analysts clearly believe CVB Financial is more favorable than Village Bank and Trust Financial.

Valuation and Earnings

This table compares Village Bank and Trust Financial and CVB Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Village Bank and Trust Financial $27.26 million 1.75 $3.04 million N/A N/A
CVB Financial $405.34 million 7.52 $152.00 million $1.24 17.56

CVB Financial has higher revenue and earnings than Village Bank and Trust Financial.

Dividends

CVB Financial pays an annual dividend of $0.72 per share and has a dividend yield of 3.3%. Village Bank and Trust Financial does not pay a dividend. CVB Financial pays out 58.1% of its earnings in the form of a dividend. CVB Financial has increased its dividend for 5 consecutive years.

Summary

CVB Financial beats Village Bank and Trust Financial on 12 of the 14 factors compared between the two stocks.

Village Bank and Trust Financial Company Profile

Village Bank and Trust Financial Corp. operates as the bank holding company for Village Bank that provides banking and related financial services to small and medium sized businesses, professionals, and individuals. The company operates in two segments, Traditional Commercial Banking and Mortgage Banking. It accepts checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and other depository services. The company also provides secured and unsecured commercial loans to small- and medium-sized businesses for various purposes, such as funding working capital needs, business expansion, and purchase of equipment and machinery; loans for acquiring, developing, constructing, and owning commercial real estate properties; and secured and unsecured consumer loans for financing automobiles, home improvements, education, and personal investments, as well as originates residential mortgage loans for sale in the secondary market. In addition, it offers online banking, mobile banking, and remote deposit capture services for business clients. The company provides its products and services through 10 full-service branch banking offices and 1 mortgage loan production office in Central Virginia in the counties of Chesterfield, Hanover, Henrico, Powhatan, and James City. Village Bank and Trust Financial Corp. was founded in 1999 and is headquartered in Midlothian, Virginia.

CVB Financial Company Profile

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides banking and financial products and services. The company offers checking, savings, and money market accounts, as well as time certificates of deposit; and serves as a federal tax depository for business customers. It also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans that are secured by owner-occupied and investor owned properties; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, the company offers various specialized services, such as cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, payroll services, remote deposit capture, electronic funds transfer, and online account access. Further, it provides trust and investment-related services to customers through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. The company's customers consist primarily of small to mid-sized businesses and individuals located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. As of December 31, 2018, the company operated 68 banking centers and 3 trust office locations. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

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