CBB Bancorp (OTCMKTS:CBBI – Get Free Report) and Webster Financial (NYSE:WBS – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for CBB Bancorp and Webster Financial, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CBB Bancorp | 0 | 0 | 0 | 0 | 0.00 |
Webster Financial | 0 | 3 | 9 | 0 | 2.75 |
Webster Financial has a consensus price target of $57.85, suggesting a potential upside of 0.24%. Given Webster Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Webster Financial is more favorable than CBB Bancorp.
Dividends
Valuation & Earnings
This table compares CBB Bancorp and Webster Financial”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CBB Bancorp | $122.26 million | 0.90 | $28.86 million | $2.24 | 4.64 |
Webster Financial | $3.94 billion | 2.51 | $867.84 million | $4.41 | 13.09 |
Webster Financial has higher revenue and earnings than CBB Bancorp. CBB Bancorp is trading at a lower price-to-earnings ratio than Webster Financial, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CBB Bancorp has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Webster Financial has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Institutional & Insider Ownership
85.6% of Webster Financial shares are owned by institutional investors. 0.9% of Webster Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares CBB Bancorp and Webster Financial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CBB Bancorp | 19.24% | N/A | N/A |
Webster Financial | 18.80% | 11.03% | 1.23% |
Summary
Webster Financial beats CBB Bancorp on 13 of the 16 factors compared between the two stocks.
About CBB Bancorp
CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through full-service and limited-service branches in Southern California, Dallas, Texas and Honolulu, and Hawaii; and loan production 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 Webster Financial
Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking. The Commercial Banking segment offers commercial real estate and equipment financing, business banking, asset-based lending, and commercial services; public sector finance; mortgage warehouse financing; sponsor and specialty financing services; credit, deposit, and cash flow management services; and wealth management solutions to business owners and operators, including trust, asset management, financial planning, insurance, retirement, and investment products, as well as treasury management services comprising derivative, treasury, accounts payable, accounts receivable, and trade products and services. This segment also provides commercial services, such as accounts receivable factoring and trade financing, payroll funding, and business process outsourcing. The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefit services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. The Consumer Banking segment provides consumer deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers; and small business banking products, such as credit, deposit, and cash flow management products to businesses and professional service firms. The company offers online and mobile banking services. Webster Financial Corporation was founded in 1935 and is headquartered in Stamford, Connecticut.
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