Pacific Alliance Bank (OTCMKTS:PFBN) versus PCB Bancorp (NASDAQ:PCB) Head to Head Review

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

Dividends

Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. PCB Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. PCB Bancorp pays out 31.7% of its earnings in the form of a dividend. 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.

Volatility & Risk

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

Analyst Ratings

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

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

PCB Bancorp has a consensus target price of $25.50, indicating a potential upside of 3.45%. Given PCB Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe PCB Bancorp is more favorable than Pacific Alliance Bank.

Profitability

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

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

Institutional and Insider Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Alliance Bank	$26.40 million	1.01	$2.30 million	N/A	N/A
PCB Bancorp	$209.37 million	1.68	$37.45 million	$2.78	8.87

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

Summary

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

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.

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.