Preferred Bank (NASDAQ: PFBC) is one of 323 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Preferred Bank to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Preferred Bank and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Preferred Bank 0 0 2 0 3.00
Preferred Bank Competitors 2602 8875 8447 392 2.33

Preferred Bank presently has a consensus target price of $65.00, indicating a potential upside of 23.53%. As a group, “Banks” companies have a potential downside of 2.33%. Given Preferred Bank’s stronger consensus rating and higher probable upside, equities analysts clearly believe Preferred Bank is more favorable than its rivals.

Dividends

Preferred Bank pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. Preferred Bank pays out 27.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.2% and pay out 36.7% of their earnings in the form of a dividend.

Insider & Institutional Ownership

78.8% of Preferred Bank shares are held by institutional investors. Comparatively, 53.2% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Preferred Bank 28.91% 14.05% 1.25%
Preferred Bank Competitors 18.62% 8.78% 0.93%

Risk and Volatility

Preferred Bank has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Preferred Bank’s rivals have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Preferred Bank $111.90 million N/A 18.08
Preferred Bank Competitors N/A N/A 17.67

Preferred Bank is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Preferred Bank beats its rivals on 11 of the 14 factors compared.

Preferred Bank Company Profile

Preferred Bank is a commercial bank. The Bank provides deposit services, as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals and high net worth individuals. The Bank offers various services, such as personal banking, business banking and treasury management. The Bank’s loan portfolio includes real estate mortgage loans, real estate construction loans, commercial loans and trade finance. Its real estate mortgage portfolio consists of real estate mini-perm loans, as well as purchased residential mortgages. The Bank offers a range of commercial loan products, including lines of credit for working capital, term loans for capital expenditures and commercial and stand-by letters of credit. Through its branch network, the Bank provides a range of financial services to individuals and companies located primarily in Southern California.

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