Central Pacific Financial (NYSE:CPF) and University Bancorp (OTCMKTS:UNIB) Critical Analysis

Central Pacific Financial (NYSE:CPF) and University Bancorp (OTCMKTS:UNIB) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Central Pacific Financial and University Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Pacific Financial	16.44%	11.36%	0.75%
University Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Central Pacific Financial and University Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Pacific Financial	0	0	1	0	3.00
University Bancorp	0	0	0	0	N/A

Central Pacific Financial currently has a consensus target price of $24.00, indicating a potential downside of 15.25%. Given Central Pacific Financial’s higher probable upside, equities analysts clearly believe Central Pacific Financial is more favorable than University Bancorp.

Risk and Volatility

Central Pacific Financial has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, University Bancorp has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Earnings & Valuation

This table compares Central Pacific Financial and University Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Pacific Financial	$244.08 million	3.14	$58.67 million	$2.05	13.81
University Bancorp	$105.57 million	0.78	$5.43 million	N/A	N/A

Central Pacific Financial has higher revenue and earnings than University Bancorp.

Institutional and Insider Ownership

88.4% of Central Pacific Financial shares are owned by institutional investors. 2.7% of Central Pacific Financial shares are owned by company insiders. Comparatively, 63.7% of University Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Central Pacific Financial beats University Bancorp on 10 of the 11 factors compared between the two stocks.

About Central Pacific Financial

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.