Head-To-Head Survey: PCB Bancorp (NASDAQ:PCB) versus Pacific Alliance Bank (OTCMKTS:PFBN)

PCB Bancorp (NASDAQ:PCB) and Pacific Alliance Bank (OTCMKTS:PFBN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk & Volatility

PCB Bancorp has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Pacific Alliance Bank has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Earnings and Valuation

This table compares PCB Bancorp and Pacific Alliance Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCB Bancorp	$209.37 million	1.67	$37.45 million	$2.78	8.83
Pacific Alliance Bank	$26.40 million	1.01	$2.30 million	N/A	N/A

PCB Bancorp has higher revenue and earnings than Pacific Alliance Bank.

Analyst Recommendations

This is a breakdown of recent recommendations for PCB Bancorp and Pacific Alliance Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCB Bancorp	0	3	0	1	2.50
Pacific Alliance Bank	0	0	0	0	0.00

PCB Bancorp currently has a consensus target price of $25.50, suggesting a potential upside of 3.91%. Given PCB Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe PCB Bancorp is more favorable than Pacific Alliance Bank.

Profitability

This table compares PCB Bancorp and Pacific Alliance Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PCB Bancorp	19.03%	12.70%	1.21%
Pacific Alliance Bank	N/A	N/A	N/A

Insider and Institutional Ownership

33.0% of PCB Bancorp shares are owned by institutional investors. 27.0% of PCB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

PCB Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. PCB Bancorp pays out 31.7% of its earnings in the form of a dividend. PCB Bancorp has raised its dividend for 7 consecutive years. PCB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

PCB Bancorp beats Pacific Alliance Bank on 14 of the 15 factors compared between the two stocks.

About PCB Bancorp

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.

About Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.