California BanCorp (NASDAQ:BCAL – Get Free Report) and Cullen/Frost Bankers (NYSE:CFR – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Risk & Volatility
California BanCorp has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for California BanCorp and Cullen/Frost Bankers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| California BanCorp | 0 | 0 | 3 | 2 | 3.40 |
| Cullen/Frost Bankers | 3 | 8 | 1 | 1 | 2.00 |
Profitability
This table compares California BanCorp and Cullen/Frost Bankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| California BanCorp | 26.26% | 11.85% | 1.59% |
| Cullen/Frost Bankers | 21.99% | 15.84% | 1.22% |
Insider and Institutional Ownership
55.4% of California BanCorp shares are held by institutional investors. Comparatively, 86.9% of Cullen/Frost Bankers shares are held by institutional investors. 14.8% of California BanCorp shares are held by company insiders. Comparatively, 2.9% of Cullen/Frost Bankers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares California BanCorp and Cullen/Frost Bankers”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| California BanCorp | $184.56 million | 3.46 | $5.43 million | $1.94 | 10.19 |
| Cullen/Frost Bankers | $2.19 billion | 3.76 | $582.54 million | $9.72 | 13.27 |
Cullen/Frost Bankers has higher revenue and earnings than California BanCorp. California BanCorp is trading at a lower price-to-earnings ratio than Cullen/Frost Bankers, indicating that it is currently the more affordable of the two stocks.
Summary
Cullen/Frost Bankers beats California BanCorp on 8 of the 15 factors compared between the two stocks.
About California BanCorp
Southern California Bancorp operates as the holding company for Bank of Southern California, N.A. that provides various financial products to individuals, professionals, and small-to medium-sized businesses. The company offers checking, personal and business savings, and money market accounts, as well as certificates of deposit. It also provides home equity lines of credit, business loans and lines of credit, commercial real estate and construction loans, small business administration loans, letters of credit, and personal and business credit cards. In addition, the company provides cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; courier service; lockbox services; and merchant services. It operates branches in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. The company was founded in 2001 and is headquartered in San Diego, California.
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.
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