Head-To-Head Survey: Cathay General Bancorp (NASDAQ:CATY) & Brunswick Bancorp (OTCMKTS:BRBW)

Cathay General Bancorp (NASDAQ:CATY) and Brunswick Bancorp (OTCMKTS:BRBW) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

75.0% of Cathay General Bancorp shares are owned by institutional investors. Comparatively, 2.5% of Brunswick Bancorp shares are owned by institutional investors. 4.8% of Cathay General Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cathay General Bancorp and Brunswick Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cathay General Bancorp	24.41%	13.02%	1.52%
Brunswick Bancorp	20.13%	N/A	N/A

Earnings & Valuation

This table compares Cathay General Bancorp and Brunswick Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cathay General Bancorp	$778.54 million	3.47	$354.12 million	$4.52	8.20
Brunswick Bancorp	$16.41 million	2.75	$3.85 million	$1.21	13.22

Cathay General Bancorp has higher revenue and earnings than Brunswick Bancorp. Cathay General Bancorp is trading at a lower price-to-earnings ratio than Brunswick Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cathay General Bancorp has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Brunswick Bancorp has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cathay General Bancorp and Brunswick Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cathay General Bancorp	1	3	1	0	2.00
Brunswick Bancorp	0	0	0	0	N/A

Cathay General Bancorp presently has a consensus target price of $39.00, indicating a potential upside of 5.21%. Given Cathay General Bancorp’s higher possible upside, research analysts clearly believe Cathay General Bancorp is more favorable than Brunswick Bancorp.

Summary

Cathay General Bancorp beats Brunswick Bancorp on 12 of the 13 factors compared between the two stocks.

About Cathay General Bancorp

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits. It also provides loan products, such as commercial mortgage loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, as well as installment loans to individuals for household, and other consumer expenditures. In addition, the company offers trade financing, letter of credit, wire transfer, forward currency spot and forward contract, safe deposit, collection, automatic teller machine, Internet banking, investment, and other customary bank services, as well as securities and insurance products. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, California.

About Brunswick Bancorp

Brunswick Bancorp is a bank holding company, which engages in the provision of consumer and commercial banking services. It offers personal banking, checking, certificate of deposit accounts, business checking, equipment leasing, commercial mortgages, small business loans, construction loans, and merchant services. The company was founded in 1984 and is headquartered in New Brunswick, NJ.