CNB Financial (NASDAQ: CCNE) and Westpac Banking (NYSE:WBK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
41.9% of CNB Financial shares are owned by institutional investors. Comparatively, 0.6% of Westpac Banking shares are owned by institutional investors. 4.4% of CNB Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
CNB Financial has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Westpac Banking has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Valuation & Earnings
This table compares CNB Financial and Westpac Banking’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNB Financial||$130.31 million||3.15||$23.86 million||$1.57||17.12|
|Westpac Banking||$28.58 billion||2.78||$6.09 billion||$1.79||13.27|
Westpac Banking has higher revenue and earnings than CNB Financial. Westpac Banking is trading at a lower price-to-earnings ratio than CNB Financial, indicating that it is currently the more affordable of the two stocks.
CNB Financial pays an annual dividend of $0.66 per share and has a dividend yield of 2.5%. Westpac Banking pays an annual dividend of $1.43 per share and has a dividend yield of 6.0%. CNB Financial pays out 42.0% of its earnings in the form of a dividend. Westpac Banking pays out 79.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of recent recommendations for CNB Financial and Westpac Banking, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CNB Financial currently has a consensus price target of $29.50, indicating a potential upside of 9.75%. Given CNB Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe CNB Financial is more favorable than Westpac Banking.
This table compares CNB Financial and Westpac Banking’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CNB Financial beats Westpac Banking on 10 of the 16 factors compared between the two stocks.
CNB Financial Company Profile
CNB Financial Corporation is a financial holding company. The Company is the holding company of CNB Bank (the Bank); CNB Securities Corporation, which maintains investments in debt and equity securities; CNB Insurance Agency, which provides for the sale of nonproprietary annuities and other insurance products, and Holiday Financial Services Corporation, which offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment. The Bank is a full service bank engaging in a range of banking activities and services for individual, business, governmental and institutional customers. The Bank’s Wealth & Asset Management Services division offers a range of client services. The Bank’s activities include checking, savings and time deposit accounts; real estate loans, commercial loans, industrial loans, residential loans and consumer loans, and other specialized financial services.
Westpac Banking Company Profile
Westpac Banking Corporation is a banking organization. The Company provides a range of banking and financial services in markets, including consumer, business and institutional banking and wealth management services. The Company is engaged in the provision of financial services, including lending, deposit taking, payments services, investment portfolio management and advice, superannuation and funds management, insurance services, leasing finance, general finance, interest rate risk management and foreign exchange services. The Company’s segments include Consumer Bank, Business Bank, BT Financial Group (BTFG), Westpac Institutional Bank (WIB) and Westpac New Zealand. The Company has branches throughout Australia, New Zealand, Asia and in the Pacific region. The Company through its division offers its services under various brands, such as Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands.
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