CBB Bancorp (OTCMKTS: CBBI – Get a rating) and Fulton Financial (NASDAQ:FULT – Get a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on institutional ownership strength, earnings, dividends, profitability, valuation, risk, and analyst recommendations.
CBB Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 2.8%. Fulton Financial pays an annual dividend of $0.60 per share and has a dividend yield of 3.4%. CBB Bancorp pays 10.9% of its profits as a dividend. Fulton Financial pays 37.0% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Fulton Financial has increased its dividend for 2 consecutive years. Fulton Financial is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
64.1% of Fulton Financial shares are held by institutional investors. 1.0% of Fulton Financial shares are held by insiders of the company. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.
Valuation and benefits
This chart compares the revenue, earnings per share (EPS), and valuation of CBB Bancorp and Fulton Financial.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|CBB Bancorp||$83.85 million||1.41||$27.53 million||$2.94||3.84|
|Fulton Financial||$997.16 million||2.92||$275.50 million||$1.62||10.75|
Fulton Financial has higher revenue and earnings than CBB Bancorp. CBB Bancorp trades at a lower price-to-earnings ratio than Fulton Financial, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for CBB Bancorp and Fulton Financial, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|CBB Bancorp||0||0||0||0||N / A|
Fulton Financial has a consensus target price of $18.17, indicating a potential upside of 4.29%. Given Fulton Financial’s likely higher upside, analysts clearly believe Fulton Financial is more favorable than CBB Bancorp.
This table compares the net margins, return on equity and return on assets of CBB Bancorp and Fulton Financial.
|Net margins||Return on equity||return on assets|
|CBB Bancorp||33.84%||N / A||N / A|
Volatility and risk
CBB Bancorp has a beta of 0.65, suggesting its stock price is 35% less volatile than the S&P 500. By comparison, Fulton Financial has a beta of 0.8, suggesting its stock price is 20% less volatile than the S&P 500.
Fulton Financial beats CBB Bancorp on 13 out of 16 factors compared between the two stocks.
About CBB Bancorp
CBB Bancorp, Inc. operates as the holding company of Commonwealth Business Bank which provides various commercial banking products and services to individuals and businesses in the United States. It offers verification, savings, money market and deposit account certification services; SBA loans; commercial lines of credit; commercial term loans; business and commercial real estate loans; building loans; and credit cards. The Company also provides cash management services, mobile and online banking, as well as securities and escrow services. In addition, it engages in investment activities; and offers trade finance services, including trade letters of credit, stand-by letters of credit and documentary collection services. The company offers its services through 9 full-service branches and 1 limited-service branch in Southern California, Dallas, Texas, Honolulu and Hawaii. and 5 loan origination offices in the states of Colorado, Georgia, Texas and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.
About Fulton Financial
Fulton Financial Corporation operates as a financial holding company that provides personal and business banking products and services. It accepts various checking accounts and savings deposit products, certificates of deposit and individual retirement accounts. The Company also offers secured consumer loans, including home equity loans and lines of credit, auto loans, personal lines of credit and current account overdraft protection; giant construction and residential mortgages; and commercial lending products including commercial, commercial and industrial real estate loans and construction loans, as well as equipment lease financing loans. In addition, it provides letters of credit, cash management services and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance and investment advisory services. In addition, the company holds passive investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through traditional financial center banking, as well as through a network of ATMs, telephone banking, mobile banking and online banking. The company operated branches in Pennsylvania, Maryland, Delaware, New Jersey and Virginia. Fulton Financial Corporation was incorporated in 1882 and is headquartered in Lancaster, Pennsylvania.
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