Reviewing CPB (NYSE:CPF) and Riverview Bancorp (NASDAQ:RVSB)

Riverview Bancorp (NASDAQ:RVSB) and CPB (NYSE:CPF) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

69.6% of Riverview Bancorp shares are held by institutional investors. Comparatively, 88.4% of CPB shares are held by institutional investors. 3.9% of Riverview Bancorp shares are held by company insiders. Comparatively, 1.7% of CPB shares are held by company 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 Riverview Bancorp and CPB”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riverview Bancorp	$64.74 million	1.91	-$4.34 million	($0.14)	-44.21
CPB	$365.98 million	2.72	$77.48 million	$3.31	11.82

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

Risk and Volatility

Riverview Bancorp has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, CPB has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Riverview Bancorp and CPB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riverview Bancorp	-4.46%	3.76%	0.38%
CPB	23.69%	14.75%	1.17%

Analyst Ratings

This is a summary of recent ratings and target prices for Riverview Bancorp and CPB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riverview Bancorp	0	2	1	0	2.33
CPB	0	3	2	1	2.67

CPB has a consensus price target of $40.33, indicating a potential upside of 3.08%. Given CPB’s stronger consensus rating and higher possible upside, analysts plainly believe CPB is more favorable than Riverview Bancorp.

Dividends

Riverview Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. CPB pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Riverview Bancorp pays out -57.1% of its earnings in the form of a dividend. CPB pays out 36.3% 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. CPB has increased its dividend for 1 consecutive years. CPB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CPB beats Riverview Bancorp on 15 of the 18 factors compared between the two stocks.

About Riverview Bancorp

Riverview Bancorp, Inc. operates as a bank holding company for Riverview Bank that provides commercial banking services to small and medium size businesses, professionals, and wealth building individuals. It offers a range of deposit products, including demand deposits, negotiable order of withdrawal accounts, money market accounts, savings accounts, certificates of deposit, and retirement savings plans. The company also provides commercial business, commercial and residential real estate, multi-family real estate, land, real estate construction, and one-to-four family mortgage loans; other consumer loans, such as automobile, boat, motorcycle, recreational vehicle, savings account, and unsecured loans; and home equity lines of credit. In addition, it is involved in the provision of mortgage brokerage and mortgage loan servicing activities, as well as offers asset management services comprising trust, estate planning, and investment management. The company operates in Camas, Washougal, Stevenson, White Salmon, Battle Ground, Goldendale, Ridgefield, and Vancouver, Washington, as well as Portland, Gresham, Tualatin, and Aumsville, Oregon. Riverview Bancorp, Inc. was founded in 1923 and is based in Vancouver, Washington.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.