Contrasting Truxton (OTCMKTS:TRUX) & Community West Bancshares (NASDAQ:CWBC)

Truxton (OTCMKTS:TRUXGet Rating) and Community West Bancshares (NASDAQ:CWBCGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Truxton and Community West Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Truxton 37.11% N/A N/A
Community West Bancshares 26.29% 13.53% 1.20%

Dividends

Truxton pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. Community West Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Truxton pays out 27.1% of its earnings in the form of a dividend. Community West Bancshares pays out 18.7% 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. Community West Bancshares has raised its dividend for 1 consecutive years. Community West Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

0.8% of Truxton shares are held by institutional investors. Comparatively, 26.4% of Community West Bancshares shares are held by institutional investors. 23.0% of Community West Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Truxton and Community West Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Truxton 0 0 0 0 N/A
Community West Bancshares 0 1 0 0 2.00

Volatility & Risk

Truxton has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Community West Bancshares has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Valuation and Earnings

This table compares Truxton and Community West Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Truxton $39.19 million 5.30 $14.54 million $5.01 14.22
Community West Bancshares $49.83 million 2.41 $13.10 million $1.50 9.24

Truxton has higher earnings, but lower revenue than Community West Bancshares. Community West Bancshares is trading at a lower price-to-earnings ratio than Truxton, indicating that it is currently the more affordable of the two stocks.

Summary

Community West Bancshares beats Truxton on 9 of the 14 factors compared between the two stocks.

Truxton Company Profile (Get Rating)

Truxton Corporation, through Truxton Trust Company, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions. The company's primary deposit products include demand and money market accounts, as well as certificates of deposit; and primary lending products comprise residential and commercial real estate mortgages, commercial loans, construction and land development loans, and consumer loans. It also provides private banking, wealth management, trust, and family office services; estate and lending services; and business banking, commercial lending, and treasury management services. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

Community West Bancshares Company Profile (Get Rating)

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposit; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. It operates through a network of seven branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard, and Paso Robles. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

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