CVB Financial (NASDAQ:CVBF) vs. International Bancshares (NASDAQ:IBOC) Head-To-Head Survey

International Bancshares (NASDAQ:IBOC) and CVB Financial (NASDAQ:CVBF) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Insider and Institutional Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 74.2% of CVB Financial shares are held by institutional investors. 13.9% of International Bancshares shares are held by company insiders. Comparatively, 6.0% of CVB Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

International Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. CVB Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. International Bancshares pays out 20.5% of its earnings in the form of a dividend. CVB Financial pays out 55.6% 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. International Bancshares has raised its dividend for 15 consecutive years.

Volatility and Risk

International Bancshares has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, CVB Financial has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Profitability

This table compares International Bancshares and CVB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	38.65%	15.62%	2.59%
CVB Financial	29.32%	9.41%	1.25%

Valuation & Earnings

This table compares International Bancshares and CVB Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$970.10 million	4.21	$411.77 million	$6.43	10.22
CVB Financial	$684.59 million	4.22	$221.43 million	$1.44	14.37

International Bancshares has higher revenue and earnings than CVB Financial. International Bancshares is trading at a lower price-to-earnings ratio than CVB Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for International Bancshares and CVB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	0	0	0.00
CVB Financial	0	4	2	0	2.33

CVB Financial has a consensus price target of $22.60, indicating a potential upside of 9.23%. Given CVB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe CVB Financial is more favorable than International Bancshares.

Summary

International Bancshares beats CVB Financial on 10 of the 17 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

About CVB Financial

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers. The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access. Further, the company provides trust services, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.