TriCo Bancshares (NASDAQ:TCBK) & City Bank (OTCMKTS:CTBK) Critical Analysis

City Bank (OTCMKTS:CTBK) and TriCo Bancshares (NASDAQ:TCBK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

59.1% of TriCo Bancshares shares are owned by institutional investors. 37.5% of City Bank shares are owned by insiders. Comparatively, 4.9% of TriCo Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares City Bank and TriCo Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Bank	N/A	N/A	N/A	N/A	N/A
TriCo Bancshares	$538.91 million	3.06	$121.56 million	$3.95	13.08

TriCo Bancshares has higher revenue and earnings than City Bank.

Profitability

This table compares City Bank and TriCo Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Bank	N/A	N/A	N/A
TriCo Bancshares	23.71%	9.87%	1.30%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for City Bank and TriCo Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Bank	0	0	0	0	0.00
TriCo Bancshares	0	3	4	0	2.57

TriCo Bancshares has a consensus price target of $54.60, suggesting a potential upside of 5.67%. Given TriCo Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe TriCo Bancshares is more favorable than City Bank.

Summary

TriCo Bancshares beats City Bank on 8 of the 9 factors compared between the two stocks.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.