ChoiceOne Financial Services (NASDAQ:COFS) vs. Columbia Banking System (NASDAQ:COLB) Head-To-Head Analysis

ChoiceOne Financial Services (NASDAQ:COFS) and Columbia Banking System (NASDAQ:COLB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Earnings and Valuation

This table compares ChoiceOne Financial Services and Columbia Banking System”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChoiceOne Financial Services	$139.10 million	2.13	$26.73 million	$3.26	10.15
Columbia Banking System	$2.97 billion	1.93	$533.67 million	$2.54	10.76

Columbia Banking System has higher revenue and earnings than ChoiceOne Financial Services. ChoiceOne Financial Services is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ChoiceOne Financial Services has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for ChoiceOne Financial Services and Columbia Banking System, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChoiceOne Financial Services	0	0	1	0	3.00
Columbia Banking System	0	9	4	0	2.31

ChoiceOne Financial Services presently has a consensus price target of $39.00, indicating a potential upside of 17.82%. Columbia Banking System has a consensus price target of $30.38, indicating a potential upside of 11.14%. Given ChoiceOne Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe ChoiceOne Financial Services is more favorable than Columbia Banking System.

Insider and Institutional Ownership

19.9% of ChoiceOne Financial Services shares are held by institutional investors. Comparatively, 92.5% of Columbia Banking System shares are held by institutional investors. 7.9% of ChoiceOne Financial Services shares are held by insiders. Comparatively, 0.6% of Columbia Banking System shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ChoiceOne Financial Services and Columbia Banking System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChoiceOne Financial Services	19.21%	12.44%	1.04%
Columbia Banking System	17.99%	11.21%	1.10%

Dividends

ChoiceOne Financial Services pays an annual dividend of $1.12 per share and has a dividend yield of 3.4%. Columbia Banking System pays an annual dividend of $1.44 per share and has a dividend yield of 5.3%. ChoiceOne Financial Services pays out 34.4% of its earnings in the form of a dividend. Columbia Banking System pays out 56.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

ChoiceOne Financial Services beats Columbia Banking System on 9 of the 16 factors compared between the two stocks.

About ChoiceOne Financial Services

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.