Comerica (NYSE: CMA) and Riverview Bancorp (NASDAQ:RVSB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
83.1% of Comerica shares are owned by institutional investors. Comparatively, 60.2% of Riverview Bancorp shares are owned by institutional investors. 1.1% of Comerica shares are owned by insiders. Comparatively, 7.4% of Riverview Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Comerica and Riverview Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Comerica||$3.29 billion||5.13||$743.00 million||$4.13||23.66|
|Riverview Bancorp||$45.64 million||4.59||$7.40 million||$0.42||22.12|
Comerica has higher revenue and earnings than Riverview Bancorp. Riverview Bancorp is trading at a lower price-to-earnings ratio than Comerica, indicating that it is currently the more affordable of the two stocks.
Comerica pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. Riverview Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. Comerica pays out 29.1% of its earnings in the form of a dividend. Riverview Bancorp pays out 28.6% 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. Comerica has raised its dividend for 6 consecutive years. Riverview Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Comerica has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Riverview Bancorp has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Comerica and Riverview Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Comerica currently has a consensus target price of $92.80, suggesting a potential downside of 5.03%. Given Comerica’s higher probable upside, research analysts clearly believe Comerica is more favorable than Riverview Bancorp.
This table compares Comerica and Riverview Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Comerica beats Riverview Bancorp on 13 of the 16 factors compared between the two stocks.
Comerica Company Profile
Comerica Incorporated is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. The Company’s segments include the Business Bank, the Retail Bank, Wealth Management, Finance and Other. The Business Bank serves middle market businesses, multinational corporations and governmental entities by offering various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. The Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. The Wealth Management segment offers products and services consisting of fiduciary services, private banking, retirement services, investment advisory services, investment banking and brokerage services.
Riverview Bancorp Company Profile
Riverview Bancorp, Inc. (Riverview) is a savings and loan holding company of Riverview Community Bank (the Bank). The Company operates through two segments, which include banking operations performed by the Bank and trust and investment services performed by Riverview Asset Management Corp. (RAMCorp). The Company is engaged in the business of attracting deposits from the general public and using such funds in its primary market area to originate commercial business, commercial real estate, multi-family real estate, land, real estate construction, residential real estate and other consumer loans. Additionally, RAMCorp offers trust and investment services. Riverview Mortgage, a mortgage broker division of the Bank, originates mortgage loans for various mortgage companies in the Vancouver/Portland metropolitan areas, as well as for the Bank. The Bank’s Business and Professional Banking Division offers commercial and business banking services. It operates from over 20 branch offices.
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