Head to Head Comparison: Flagstar Bank, National Association (NYSE:FLG) & PCB Bancorp (NASDAQ:PCB)

Flagstar Bank, National Association (NYSE:FLG) and PCB Bancorp (NASDAQ:PCB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Insider & Institutional Ownership

67.9% of Flagstar Bank, National Association shares are held by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are held by institutional investors. 21.4% of Flagstar Bank, National Association shares are held by company insiders. Comparatively, 27.0% of PCB Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Flagstar Bank, National Association and PCB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Bank, National Association	3	3	9	0	2.40
PCB Bancorp	0	2	0	2	3.00

Flagstar Bank, National Association currently has a consensus price target of $14.12, indicating a potential upside of 34.72%. PCB Bancorp has a consensus price target of $27.75, indicating a potential downside of 7.41%. Given Flagstar Bank, National Association’s higher probable upside, equities analysts plainly believe Flagstar Bank, National Association is more favorable than PCB Bancorp.

Risk & Volatility

Flagstar Bank, National Association has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares Flagstar Bank, National Association and PCB Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flagstar Bank, National Association	$4.81 billion	0.87	-$177.00 million	$0.15	69.90
PCB Bancorp	$209.37 million	2.01	$37.45 million	$2.96	10.12

PCB Bancorp has lower revenue, but higher earnings than Flagstar Bank, National Association. PCB Bancorp is trading at a lower price-to-earnings ratio than Flagstar Bank, National Association, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Flagstar Bank, National Association and PCB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Bank, National Association	2.22%	1.45%	0.12%
PCB Bancorp	19.92%	12.98%	1.25%

Dividends

Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. PCB Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Flagstar Bank, National Association pays out 26.7% of its earnings in the form of a dividend. PCB Bancorp pays out 29.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PCB Bancorp has increased 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 Flagstar Bank, National Association on 11 of the 18 factors compared between the two stocks.

About Flagstar Bank, National Association

Flagstar Bank, National Association is a full-service bank serving consumers, businesses and communities. Its offerings include checking and savings accounts, residential mortgages and other home-financing products, as well as business and commercial real estate lending. The bank also provides services such as cash management and other banking solutions for businesses. Its retail banking presence is concentrated in parts of the Northeast and Midwest, while its mortgage and commercial banking activities extend beyond its branch network.

About PCB Bancorp

PCB Bancorp is a bank holding company headquartered in Los Angeles, California, and the parent of PCB Bank, which began operations in 2003 as Pacific City Bank. The company provides commercial banking services to businesses, professionals and individuals, with a focus on serving Korean American and other local communities. Its services include business and commercial real estate loans, small business lending, trade finance, deposit accounts and cash management. PCB Bank also offers consumer banking products and digital banking services.