Chiba Bank (OTCMKTS:CHBAY) versus City (NASDAQ:CHCO) Financial Survey

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

Dividends

City pays an annual dividend of $3.48 per share and has a dividend yield of 2.5%. Chiba Bank pays an annual dividend of $1.23 per share and has a dividend yield of 1.4%. City pays out 38.1% of its earnings in the form of a dividend. Chiba Bank pays out 26.1% 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. City has increased its dividend for 6 consecutive years. City is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

City has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Insider and Institutional Ownership

72.4% of City shares are held by institutional investors. 1.8% of City shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares City and Chiba Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City	32.58%	16.34%	1.95%
Chiba Bank	20.96%	8.25%	0.49%

Analyst Ratings

This is a summary of recent ratings for City and Chiba Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City	0	2	1	0	2.33
Chiba Bank	0	0	0	1	4.00

City currently has a consensus price target of $136.50, indicating a potential downside of 1.97%. Given City’s higher probable upside, research analysts clearly believe City is more favorable than Chiba Bank.

Earnings and Valuation

This table compares City and Chiba Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City	$313.12 million	6.25	$130.49 million	$9.14	15.24
Chiba Bank	$2.96 billion	4.73	$620.82 million	$4.72	19.12

Chiba Bank has higher revenue and earnings than City. City is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.

Summary

City beats Chiba Bank on 12 of the 18 factors compared between the two stocks.

About City

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; home equity lines of credit; amortized home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts, as well as owner-occupied real estate and construction, land development, and lines of credit. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government-insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.