Head-To-Head Contrast: CBB BANCORP INC/SH (OTCMKTS:CBBI) vs. Hanmi Financial (OTCMKTS:HAFC)

CBB BANCORP INC/SH (OTCMKTS:CBBI) and Hanmi Financial (NASDAQ:HAFC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares CBB BANCORP INC/SH and Hanmi Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBB BANCORP INC/SH 22.58% N/A N/A
Hanmi Financial 21.65% 10.71% 1.10%

Volatility and Risk

CBB BANCORP INC/SH has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Hanmi Financial has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Dividends

Hanmi Financial pays an annual dividend of $0.96 per share and has a dividend yield of 4.4%. CBB BANCORP INC/SH does not pay a dividend. Hanmi Financial pays out 50.5% of its earnings in the form of a dividend. Hanmi Financial has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares CBB BANCORP INC/SH and Hanmi Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBB BANCORP INC/SH $69.68 million 1.65 $16.66 million N/A N/A
Hanmi Financial $258.92 million 2.59 $57.87 million $1.90 11.41

Hanmi Financial has higher revenue and earnings than CBB BANCORP INC/SH.

Institutional and Insider Ownership

1.0% of CBB BANCORP INC/SH shares are owned by institutional investors. Comparatively, 89.7% of Hanmi Financial shares are owned by institutional investors. 2.9% of Hanmi Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for CBB BANCORP INC/SH and Hanmi Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBB BANCORP INC/SH 0 0 0 0 N/A
Hanmi Financial 0 3 0 0 2.00

Hanmi Financial has a consensus price target of $25.50, indicating a potential upside of 17.67%. Given Hanmi Financial’s higher possible upside, analysts plainly believe Hanmi Financial is more favorable than CBB BANCORP INC/SH.

Summary

Hanmi Financial beats CBB BANCORP INC/SH on 12 of the 14 factors compared between the two stocks.

CBB BANCORP INC/SH Company Profile

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking services to individuals and businesses in the United States. It offers checking, installment, savings, money market, and certification of deposit accounts, as well as IRAs; business line of credit, term loans, trade finance, professional loans, business property loans, commercial real estate loans, and construction loans; SBA loans; and debit and credit cards. The company also provides treasury management, mobile and online banking, wire transfer, telephone banking, safe deposit box, and lockbox services. It offers its service through eight retail branches in California and Texas. The company was founded in 2005 and is headquartered in Los Angeles, California.

Hanmi Financial Company Profile

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. It also provides real estate loans, including commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit, as well as international finance, and trade services and products comprising letters of credit, and import and export financing. In addition, the company offers consumer loans that include automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, unsecured lines of credit, and credit cards; and small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. As of January 24, 2019, it operated a network of 39 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was incorporated in 2000 and is headquartered in Los Angeles, California.

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