BEO Bancorp (OTCMKTS:BEOB – Get Rating) and Cathay General Bancorp (NASDAQ:CATY – Get Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider & Institutional Ownership
69.5% of Cathay General Bancorp shares are owned by institutional investors. 4.3% of Cathay General Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
BEO Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Cathay General Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 3.5%. Cathay General Bancorp pays out 35.1% of its earnings in the form of a dividend. Cathay General Bancorp has raised its dividend for 1 consecutive years. Cathay General Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and target prices for BEO Bancorp and Cathay General Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cathay General Bancorp||0||2||0||0||2.00|
Cathay General Bancorp has a consensus target price of $44.00, indicating a potential upside of 11.68%. Given Cathay General Bancorp’s higher probable upside, analysts clearly believe Cathay General Bancorp is more favorable than BEO Bancorp.
This table compares BEO Bancorp and Cathay General Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cathay General Bancorp||40.53%||12.26%||1.48%|
Earnings and Valuation
This table compares BEO Bancorp and Cathay General Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BEO Bancorp||$33.57 million||1.48||$6.92 million||N/A||N/A|
|Cathay General Bancorp||$721.11 million||4.11||$298.30 million||$3.87||10.18|
Cathay General Bancorp has higher revenue and earnings than BEO Bancorp.
Volatility & Risk
BEO Bancorp has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Cathay General Bancorp has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Cathay General Bancorp beats BEO Bancorp on 12 of the 13 factors compared between the two stocks.
About BEO Bancorp (Get Rating)
BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, savings, money market, time deposits, and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, farm, and refinancing loans; lines of credit; Internet banking and bill payment services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. BEO Bancorp was founded in 1945 and is based in Heppner, Oregon.
About Cathay General Bancorp (Get Rating)
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, traveler's check, safe deposit, night deposit, social security payment deposit, collection, bank-by-mail, drive-up and walk-up window, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. As of March 1, 2022, it operated 31 branches in Southern California, 16 branches in Northern California, 10 branches in New York, four branches in Washington, two branches in Illinois, and two branches in Texas, as well as one branch each in Maryland, Massachusetts, Nevada, and New Jersey, and Hong Kong; and a representative office each in Beijing, Taipei, and Shanghai. The company was founded in 1962 and is headquartered in Los Angeles, California.
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