By otakuyassine3@gmail.com 
CVB Financial (NASDAQ:CVBF – Get Free Report) and International Bancshares (NASDAQ:IBOC – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Volatility & Risk
CVB Financial has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Insider & Institutional Ownership
74.2% of CVB Financial shares are owned by institutional investors. Comparatively, 65.9% of International Bancshares shares are owned by institutional investors. 6.0% of CVB Financial shares are owned by insiders. Comparatively, 13.9% of International Bancshares 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.
Valuation & Earnings
This table compares CVB Financial and International Bancshares”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVB Financial | $684.59 million | 4.25 | $200.72 million | $1.44 | 14.47 |
| International Bancshares | $970.10 million | 4.22 | $411.77 million | $6.43 | 10.25 |
International Bancshares has higher revenue and earnings than CVB Financial. International Bancshares is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.
Dividends
CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. International Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. CVB Financial pays out 55.6% of its earnings in the form of a dividend. International Bancshares pays out 20.5% 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. International Bancshares has increased its dividend for 15 consecutive years.
Profitability
This table compares CVB Financial and International Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVB Financial | 29.32% | 9.35% | 1.27% |
| International Bancshares | 38.65% | 15.62% | 2.59% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for CVB Financial and International Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVB Financial | 0 | 4 | 2 | 0 | 2.33 |
| International Bancshares | 0 | 0 | 0 | 0 | 0.00 |
CVB Financial presently has a consensus target price of $22.20, suggesting a potential upside of 6.53%. Given CVB Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe CVB Financial is more favorable than International Bancshares.
Summary
International Bancshares beats CVB Financial on 10 of the 17 factors compared between the two stocks.
About CVB Financial
CVB Financial Corp. operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers. The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture 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; 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, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access. Further, the company provides trust services, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.
About International Bancshares
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.
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