Valley National Bancorp (NYSE:VLY) and CHESAPEAKE FINL/SH (OTCMKTS:CPKF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Dividends

Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 4.2%. CHESAPEAKE FINL/SH pays an annual dividend of $0.58 per share and has a dividend yield of 2.2%. CHESAPEAKE FINL/SH pays out 26.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

55.9% of Valley National Bancorp shares are owned by institutional investors. Comparatively, 2.1% of CHESAPEAKE FINL/SH shares are owned by institutional investors. 3.5% of Valley National Bancorp shares are owned by company insiders. Comparatively, 39.5% of CHESAPEAKE FINL/SH shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Valley National Bancorp and CHESAPEAKE FINL/SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valley National Bancorp 0 2 2 0 2.50
CHESAPEAKE FINL/SH 0 0 0 0 N/A

Valley National Bancorp currently has a consensus target price of $13.69, suggesting a potential upside of 31.99%. Given Valley National Bancorp’s higher possible upside, equities analysts clearly believe Valley National Bancorp is more favorable than CHESAPEAKE FINL/SH.

Profitability

This table compares Valley National Bancorp and CHESAPEAKE FINL/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valley National Bancorp N/A N/A N/A
CHESAPEAKE FINL/SH 21.22% 12.09% 1.32%

Valuation and Earnings

This table compares Valley National Bancorp and CHESAPEAKE FINL/SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valley National Bancorp N/A N/A N/A N/A N/A
CHESAPEAKE FINL/SH $51.05 million 2.15 $10.82 million $2.17 12.35

CHESAPEAKE FINL/SH has higher revenue and earnings than Valley National Bancorp.

Valley National Bancorp Company Profile

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, trust, and investment services. The company operates through Commercial Lending, Consumer Lending, and Investment Management segments. Its deposit products include non-interest bearing, savings, NOW, and money market deposits, as well as certificates of deposit. The company's loan products comprise construction, residential mortgage, home equity, automobile, and floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans, credit card loans, personal lines of credit, personal loans, and loans secured by cash surrender value of life insurance. It also invests in securities and interest-bearing deposits with banks, such as fixed rate securities and federal funds; and offers international banking services, such as standby letters of credit, documentary letters of credit and related products, and other ancillary services. In addition, the company provides asset management advisory, trust, and asset-based lending support services; property and casualty, life, health, and title insurance products; and health care equipment lending and other commercial equipment leases, as well as real estate related investments. Further, it offers other banking services comprising automated teller machine, telephone and Internet banking, remote deposit capturing, overdraft, drive-in and night deposit, and safe deposit services. As of December 31, 2017, the company operated 237 branches in northern and central New Jersey; the New York City boroughs of Manhattan, Brooklyn, Queens, and Long Island; and southeast and central Florida. Valley National Bancorp was founded in 1927 and is headquartered in Wayne, New Jersey.

CHESAPEAKE FINL/SH Company Profile

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for corporate and individual clients in Virginia. The company offers interest and noninterest checking, savings, and money market accounts, as well as certificates of deposit. It also provides mortgage loans, single-family residential and residential construction loans, lines of credit, and consumer loans; and commercial loans, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans. In addition, the company offers merchant processing services, accounts receivable financing, wealth management and trust, and cash management services. It operates through 15 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg, and 3 in Richmond. Chesapeake Financial Shares, Inc. was founded in 1900 and is based in Kilmarnock, Virginia.

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