Contrasting California International Bank, N.A. (OTCMKTS:CAIB) and Cullen/Frost Bankers (NYSE:CFR)

Cullen/Frost Bankers (NYSE:CFR) and California International Bank, N.A. (OTCMKTS:CAIB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Cullen/Frost Bankers and California International Bank, N.A., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullen/Frost Bankers	3	8	3	0	2.00
California International Bank, N.A.	0	0	0	0	0.00

Cullen/Frost Bankers presently has a consensus price target of $127.07, indicating a potential downside of 4.37%. Given Cullen/Frost Bankers’ stronger consensus rating and higher probable upside, analysts clearly believe Cullen/Frost Bankers is more favorable than California International Bank, N.A..

Profitability

This table compares Cullen/Frost Bankers and California International Bank, N.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cullen/Frost Bankers	18.81%	15.82%	1.15%
California International Bank, N.A.	N/A	N/A	N/A

Risk and Volatility

Cullen/Frost Bankers has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, California International Bank, N.A. has a beta of -0.86, meaning that its share price is 186% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cullen/Frost Bankers and California International Bank, N.A.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullen/Frost Bankers	$2.03 billion	4.20	$597.97 million	$8.06	16.49
California International Bank, N.A.	$4.85 million	3.44	N/A	N/A	N/A

Cullen/Frost Bankers has higher revenue and earnings than California International Bank, N.A..

Institutional & Insider Ownership

86.9% of Cullen/Frost Bankers shares are owned by institutional investors. 3.0% of Cullen/Frost Bankers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Cullen/Frost Bankers beats California International Bank, N.A. on 11 of the 11 factors compared between the two stocks.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.

About California International Bank, N.A.

California International Bank, N.A. provides various banking products and services to personal and business customers in California. It offers checking accounts, savings and investment products, loans, ATM and debit cards, payment processing solutions, and online banking services. California International Bank, N.A. was incorporated in 2006 and is headquartered in Westminster, California.