RBB Bancorp (NASDAQ: PFBI) and Premier Financial Bancorp (NASDAQ:PFBI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares RBB Bancorp and Premier Financial Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RBB Bancorp $87.31 million 5.37 $25.52 million $1.82 15.57
Premier Financial Bancorp $70.64 million 29.82 $14.81 million N/A N/A

RBB Bancorp has higher revenue and earnings than Premier Financial Bancorp.

Profitability

This table compares RBB Bancorp and Premier Financial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RBB Bancorp 31.31% 11.69% 1.85%
Premier Financial Bancorp 23.63% 9.18% 1.12%

Analyst Ratings

This is a summary of current recommendations and price targets for RBB Bancorp and Premier Financial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RBB Bancorp 0 0 2 0 3.00
Premier Financial Bancorp 0 0 0 0 N/A

RBB Bancorp presently has a consensus target price of $33.00, suggesting a potential upside of 16.48%. Given RBB Bancorp’s higher possible upside, equities research analysts clearly believe RBB Bancorp is more favorable than Premier Financial Bancorp.

Institutional & Insider Ownership

33.8% of RBB Bancorp shares are held by institutional investors. Comparatively, 3.9% of Premier Financial Bancorp shares are held by institutional investors. 27.4% of RBB Bancorp shares are held by company insiders. Comparatively, 12.9% of Premier Financial Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

RBB Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Premier Financial Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. RBB Bancorp pays out 19.8% of its earnings in the form of a dividend. Premier Financial Bancorp has raised its dividend for 2 consecutive years. Premier Financial Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

RBB Bancorp has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500. Comparatively, Premier Financial Bancorp has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Summary

RBB Bancorp beats Premier Financial Bancorp on 9 of the 15 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities. Its deposit products include checking, savings, and money market accounts; and certificates of deposits. The company offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential construction, commercial construction, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and trust, remote deposit, e-banking, and mobile banking services, as well as operates a loan production office in California. The company primarily offers its products and services to individuals, small and middle-market businesses, municipalities, and other entities. As of March 1, 2018, it operated 10 branches in downtown Los Angeles, San Gabriel, Torrance, Rowland Heights, Monterey Park, Silver Lake, Arcadia, Cerritos, Diamond Bar, and West Los Angeles in Los Angeles County; 2 branches in Oxnard and Westlake Village, Ventura County; and a branch in Las Vegas, Nevada. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Premier Financial Bancorp

Premier Financial Bancorp, Inc., a multi-bank holding company, provides community banking services to individuals and small-to-medium sized businesses. The company accepts various deposit products, including checking, NOW, savings, money market, club, individual retirement, and overdraft protection accounts, as well as certificates of deposit. Its loan products include loans for purchasing personal residences or loans for commercial or consumer purposes secured by residential mortgages; financing for automobile; personal loans, such as unsecured lines of credit; commercial loans that are secured by business assets consisting of real estate, equipment, inventory, and accounts receivable; real estate development loans; commercial real estate loans; and agricultural loans. The company also provides depository and funds transfer services; collections; safe deposit boxes; cash management services; and bill payment, remote deposits, and telephone banking services. As of March 5, 2018, it operated 10 banking offices in Kentucky, 3 banking offices in Ohio, 24 banking offices in West Virginia, 4 banking offices in Washington DC, 1 banking offices in Maryland, and 3 banking offices in Virginia. Premier Financial Bancorp, Inc. was founded in 1991 and is headquartered in Huntington, West Virginia.

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