WallStSmart

Cathay General Bancorp (CATY)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 3436% more annual revenue ($26.35B vs $745.26M). CATY leads profitability with a 42.3% profit margin vs 28.7%. CATY appears more attractively valued with a PEG of 1.33. USB earns a higher WallStSmart Score of 75/100 (B).

CATY

Strong Buy

73

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 10.0Quality: 4.5
Piotroski: 5/9

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CATYUndervalued (+68.5%)

Margin of Safety

+68.5%

Fair Value

$168.89

Current Price

$49.50

$119.39 discount

UndervaluedFair: $168.89Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CATY5 strengths · Avg: 9.6/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
42.3%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
61.8%10/10

Strong operational efficiency at 61.8%

Revenue GrowthGrowth
19.6%8/10

19.6% revenue growth

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

CATY0 concerns · Avg: 0/10

No major concerns identified

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CATY

The strongest argument for CATY centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 42.3% and operating margin at 61.8%. Revenue growth of 19.6% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : CATY

No major red flags identified for CATY, but monitor valuation.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

CATY profiles as a growth stock while USB is a mature play — different risk/reward profiles.

USB carries more volatility with a beta of 1.04 — expect wider price swings.

CATY is growing revenue faster at 19.6% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

USB scores higher overall (75/100 vs 73/100), backed by strong 28.7% margins. CATY offers better value entry with a 68.5% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cathay General Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Cathay General Bancorp is the holding company of Cathay Bank offering various commercial banking products and services to individuals, professionals, and small and medium-sized businesses in the United States. The company is headquartered in Los Angeles, California.

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U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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