Community West Bancshares (NASDAQ:CWBC) versus Peoples Bancorp (NASDAQ:PEBO) Financial Analysis

Community West Bancshares (NASDAQ:CWBCGet Free Report) and Peoples Bancorp (NASDAQ:PEBOGet Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider and Institutional Ownership

30.1% of Community West Bancshares shares are held by institutional investors. Comparatively, 53.8% of Peoples Bancorp shares are held by institutional investors. 21.1% of Community West Bancshares shares are held by company insiders. Comparatively, 2.4% of Peoples Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Community West Bancshares and Peoples Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community West Bancshares 0 0 1 0 3.00
Peoples Bancorp 0 2 0 0 2.00

Community West Bancshares presently has a consensus price target of $15.00, indicating a potential downside of 3.60%. Peoples Bancorp has a consensus price target of $31.33, indicating a potential upside of 6.94%. Given Peoples Bancorp’s higher possible upside, analysts clearly believe Peoples Bancorp is more favorable than Community West Bancshares.

Earnings & Valuation

This table compares Community West Bancshares and Peoples Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community West Bancshares $61.39 million 2.24 $7.32 million $0.81 19.21
Peoples Bancorp $526.82 million 1.97 $113.36 million $3.46 8.47

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

Dividends

Community West Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. Peoples Bancorp pays an annual dividend of $1.56 per share and has a dividend yield of 5.3%. Community West Bancshares pays out 39.5% of its earnings in the form of a dividend. Peoples Bancorp pays out 45.1% 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. Community West Bancshares has increased its dividend for 3 consecutive years and Peoples Bancorp has increased its dividend for 8 consecutive years. Peoples Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Community West Bancshares has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Peoples Bancorp has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Community West Bancshares and Peoples Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community West Bancshares 11.92% 6.40% 0.64%
Peoples Bancorp 21.52% 13.89% 1.56%

Summary

Peoples Bancorp beats Community West Bancshares on 11 of the 17 factors compared between the two stocks.

About Community West Bancshares

(Get Free Report)

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposits; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

About Peoples Bancorp

(Get Free Report)

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and retail banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, certificates of deposit, and governmental deposits; and provides commercial and industrial, commercial real estate, construction, finance, residential real estate, and consumer indirect and direct loans, as well as home equity lines of credit and overdrafts. It also offers debit and automated teller machine (ATM) cards; safe deposit rental facilities; money orders and cashier's checks; and telephone, mobile, and internet-based banking services. In addition, the company provides various life, health, and property and casualty insurance products; third-party insurance administration; insurance premium financing; commercial and technology equipment leasing; fiduciary and trust; underwriting, origination, and servicing of equipment leases, and equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services. Further, it offers brokerage services through an unaffiliated registered broker-dealers; insurance premium finance lending and lease financing services; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing, and person-to-person payment processing services. Peoples Bancorp Inc. was founded in 1902 and is based in Marietta, Ohio.

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