Preferred Bank (PFBC) & Its Peers Head-To-Head Comparison

Preferred Bank (NASDAQ:PFBC) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Preferred Bank to related companies based on the strength of its earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Preferred Bank and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Preferred Bank	$285.93 million	$133.63 million	9.54
Preferred Bank Competitors	$37.93 billion	$2.42 billion	21.40

Preferred Bank’s competitors have higher revenue and earnings than Preferred Bank. Preferred Bank is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Preferred Bank has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Preferred Bank’s competitors have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

72.8% of Preferred Bank shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Preferred Bank and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Preferred Bank	26.20%	16.84%	1.72%
Preferred Bank Competitors	15.64%	9.43%	0.93%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Preferred Bank and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Preferred Bank	0	3	2	2	2.86
Preferred Bank Competitors	7492	30246	27845	1488	2.35

Preferred Bank presently has a consensus target price of $113.33, suggesting a potential upside of 9.74%. As a group, “Banks” companies have a potential upside of 14.34%. Given Preferred Bank’s competitors higher probable upside, analysts clearly believe Preferred Bank has less favorable growth aspects than its competitors.

Dividends

Preferred Bank pays an annual dividend of $3.20 per share and has a dividend yield of 3.1%. Preferred Bank pays out 29.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Preferred Bank has increased its dividend for 5 consecutive years. Preferred Bank lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Preferred Bank competitors beat Preferred Bank on 9 of the 15 factors compared.

About Preferred Bank

Preferred Bank is a California-based commercial bank headquartered in Los Angeles. Founded in 1991, it serves businesses, professionals, real estate investors and individuals through offices in Southern California and the San Francisco Bay Area. The bank offers commercial and small-business lending, including financing for commercial real estate, as well as deposit accounts and treasury management services. Its other services include online banking and cash-management tools for business customers.