Civista Bancshares (NASDAQ:CIVB) and OFG Bancorp (NYSE:OFG) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Institutional & Insider Ownership
53.8% of Civista Bancshares shares are held by institutional investors. Comparatively, 96.7% of OFG Bancorp shares are held by institutional investors. 4.1% of Civista Bancshares shares are held by company insiders. Comparatively, 2.4% of OFG Bancorp 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.
Volatility and Risk
Civista Bancshares has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
This table compares Civista Bancshares and OFG Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Civista Bancshares and OFG Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Civista Bancshares||$74.93 million||3.36||$15.87 million||$1.33||17.56|
|OFG Bancorp||$424.33 million||1.55||$52.64 million||$1.33||11.23|
OFG Bancorp has higher revenue and earnings than Civista Bancshares. OFG Bancorp is trading at a lower price-to-earnings ratio than Civista Bancshares, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Civista Bancshares and OFG Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Civista Bancshares currently has a consensus target price of $26.40, indicating a potential upside of 13.01%. OFG Bancorp has a consensus target price of $17.00, indicating a potential upside of 13.86%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe OFG Bancorp is more favorable than Civista Bancshares.
Civista Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. OFG Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Civista Bancshares pays out 27.1% of its earnings in the form of a dividend. OFG Bancorp pays out 18.0% 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. Civista Bancshares has increased its dividend for 2 consecutive years and OFG Bancorp has increased its dividend for 4 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
OFG Bancorp beats Civista Bancshares on 9 of the 16 factors compared between the two stocks.
About Civista Bancshares
Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that engages in the community banking business in Ohio. The company accepts noninterest-bearing and interest-bearing demand deposits, and certificates of deposit. It offers commercial, commercial and residential real estate mortgage, real estate construction, and consumer loans. The company also provides trust and third party insurance services. It operates branch banking offices in Sandusky, Norwalk, Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby, Willard, Greenwich, Plymouth, Shiloh, Akron, Dublin, Plain City, Russells Point, Urbana, West Liberty, Quincy, and Dayton communities of Ohio, as well as loan production offices in Mayfield Heights, and Westlake, Ohio. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is based in Sandusky, Ohio.
About OFG Bancorp
OFG Bancorp, a financial holding company, provides various banking and financial services. It operates in three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending products; and financial planning, investment brokerage, corporate and individual trust, and retirement services. It also offers securities brokerage services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; separately-managed accounts and mutual fund asset allocation programs; and pension administration and other financial services. In addition, the company is involved in the management and participation in public offerings and private placements of debt and equity securities; insurance agency business; and administration of retirement plans. Further, it is involved in various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, Puerto Rico government and agency obligations, and money market instruments. The company operates through a network of 48 branches in Puerto Rico. OFG Bancorp was founded in 1964 and is based in San Juan, Puerto Rico.
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