International Bancshares (NASDAQ:IBOC) versus Pacific Valley Bancorp (OTCMKTS:PVBK) Critical Review

International Bancshares (NASDAQ:IBOC) and Pacific Valley Bancorp (OTCMKTS:PVBK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares International Bancshares and Pacific Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	40.10%	14.20%	2.59%
Pacific Valley Bancorp	12.14%	N/A	N/A

Volatility & Risk

International Bancshares has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Pacific Valley Bancorp has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Institutional & Insider Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 2.8% of Pacific Valley Bancorp shares are held by institutional investors. 13.4% of International Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for International Bancshares and Pacific Valley Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
Pacific Valley Bancorp	0	0	0	0	0.00

Earnings and Valuation

This table compares International Bancshares and Pacific Valley Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.04 billion	4.13	$409.17 million	$6.76	10.25
Pacific Valley Bancorp	$30.26 million	1.59	$4.42 million	$0.79	12.34

International Bancshares has higher revenue and earnings than Pacific Valley Bancorp. International Bancshares is trading at a lower price-to-earnings ratio than Pacific Valley Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

International Bancshares beats Pacific Valley Bancorp on 12 of the 13 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

About Pacific Valley Bancorp

Pacific Valley Bancorp operates as the bank holding company for Pacific Valley Bank that provides various banking products and services in the United States. The company offers personal and business banking, including checking accounts, savings and money market accounts, and certificates of deposit; and online solutions, such as online and mobile banking, bill pay, remote deposit capture, positive pay, e-statements, and order checks. It also provides commercial or agriculture lines of credit, commercial or agriculture terms loans, commercial constructions loans, agriculture production lending, and government guaranteed loan programs; and debit card, incoming wire instructions, ATM locator, fraud prevention, identity theft, and FDIC insurance estimator services. The company was founded in 2004 and is headquartered in Salinas, California.