Reviewing Berkshire Bancorp (OTCMKTS:BERK) and East West Bancorp (NASDAQ:EWBC)

Berkshire Bancorp (OTCMKTS:BERK) and East West Bancorp (NASDAQ:EWBC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

0.1% of Berkshire Bancorp shares are owned by institutional investors. Comparatively, 88.8% of East West Bancorp shares are owned by institutional investors. 70.4% of Berkshire Bancorp shares are owned by insiders. Comparatively, 0.7% of East West Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Berkshire Bancorp has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, East West Bancorp has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Berkshire Bancorp and East West Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Bancorp 0 0 0 0 N/A
East West Bancorp 0 5 3 0 2.38

East West Bancorp has a consensus price target of $45.14, indicating a potential downside of 36.10%. Given East West Bancorp’s higher probable upside, analysts plainly believe East West Bancorp is more favorable than Berkshire Bancorp.

Profitability

This table compares Berkshire Bancorp and East West Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Bancorp N/A N/A N/A
East West Bancorp 31.05% 11.80% 1.24%

Valuation and Earnings

This table compares Berkshire Bancorp and East West Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berkshire Bancorp $30.59 million 4.45 $6.26 million N/A N/A
East West Bancorp $2.09 billion 4.78 $674.03 million $4.84 14.60

East West Bancorp has higher revenue and earnings than Berkshire Bancorp.

Summary

East West Bancorp beats Berkshire Bancorp on 10 of the 11 factors compared between the two stocks.

Berkshire Bancorp Company Profile

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers statement savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. It also provides commercial and industrial, commercial and residential real estate, multi-family real estate, construction, and consumer loans, as well as mortgages and financial leasing services. In addition, the company offers ATM and debit cards; safe deposit boxes; bill pay, collection, remote deposit capture, and foreign exchange services; and mobile, telephone, and online banking services. It operates through two branches located in Manhattan and four branches located in Brooklyn, New York; four branches located in Orange and Sullivan Counties in New York State; and one branch located in Teaneck, New Jersey. Berkshire Bancorp Inc. was founded in 1979 and is based in New York, New York.

East West Bancorp Company Profile

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States and Greater China. It operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, time deposits, and individual retirement accounts. Its loan products include commercial and residential real estate, lines of credit, construction, trade finance, letters of credit, commercial business, housing loans, asset-based lending, and equipment financing, as well as financing to clients needing a financial bridge to facilitate their business transactions between the United States and Greater China. The company also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity hedging risk management services; and internet-based services comprising online banking services. As of July 23, 2020, it operated approximately 125 locations in California, Georgia, Massachusetts, Nevada, New York, Texas, and Washington; full service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was founded in 1998 and is headquartered in Pasadena, California.

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