ConnectOne Bancorp (NASDAQ: CNOB) and Westamerica Bancorporation (NASDAQ:WABC) are both small-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Volatility and Risk
ConnectOne Bancorp has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
This table compares ConnectOne Bancorp and Westamerica Bancorporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ConnectOne Bancorp||$189.53 million||4.85||$43.22 million||$1.34||21.38|
|Westamerica Bancorporation||$190.46 million||7.92||$50.02 million||$1.90||30.07|
Westamerica Bancorporation has higher revenue and earnings than ConnectOne Bancorp. ConnectOne Bancorp is trading at a lower price-to-earnings ratio than Westamerica Bancorporation, indicating that it is currently the more affordable of the two stocks.
ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. Westamerica Bancorporation pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. ConnectOne Bancorp pays out 22.4% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Westamerica Bancorporation has increased its dividend for 5 consecutive years. Westamerica Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares ConnectOne Bancorp and Westamerica Bancorporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
68.4% of ConnectOne Bancorp shares are held by institutional investors. Comparatively, 85.1% of Westamerica Bancorporation shares are held by institutional investors. 7.6% of ConnectOne Bancorp shares are held by insiders. Comparatively, 4.9% of Westamerica Bancorporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current recommendations for ConnectOne Bancorp and Westamerica Bancorporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ConnectOne Bancorp currently has a consensus target price of $31.25, suggesting a potential upside of 9.08%. Westamerica Bancorporation has a consensus target price of $54.00, suggesting a potential downside of 5.48%. Given ConnectOne Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe ConnectOne Bancorp is more favorable than Westamerica Bancorporation.
Westamerica Bancorporation beats ConnectOne Bancorp on 9 of the 16 factors compared between the two stocks.
ConnectOne Bancorp Company Profile
ConnectOne Bancorp, Inc. is a bank holding company of ConnectOne Bank (the Bank). The Bank is a community-based, full-service New Jersey-chartered commercial bank. The Bank offers a range of deposit and loan products. In addition, to attract the business of consumer and business customers, it also provides an array of other banking services. Products and services provided include personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, credit cards, wire transfers, access to automated teller services, Internet banking, Treasury Direct, automated clearing house (ACH) origination, lockbox services and mobile banking by phone. In addition, it offers safe deposit boxes. The Bank also offers remote deposit capture banking for both retail and business customers. It offers a range of deposit and loan products and services to the general public and, in particular, to small and mid-sized businesses, local professionals and individuals.
Westamerica Bancorporation Company Profile
Westamerica Bancorporation is a bank holding company. The Company provides a range of banking services to individual and corporate customers in Northern and Central California through its subsidiary bank, Westamerica Bank. The communities served are located in Northern and Central California, from Mendocino, Lake and Nevada Counties in the north to Kern County in the south. It provides a range of loans, including commercial loans, commercial real estate loans, construction loans, residential real estate loans, and consumer installment and other loans. It maintains a securities portfolio consisting of securities issued by the United States Treasury, United States Government sponsored entities, agency and non-agency mortgage backed securities (MBS), non-agency commercial MBS, agency residential collateralized mortgage obligations (CMO), non-agency residential CMO, obligations of states and political subdivisions, asset-backed securities, corporate securities and other securities.
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