Head-To-Head Comparison: PrivateBancorp (PVTB) vs. Its Peers

PrivateBancorp (NASDAQ: PVTB) is one of 200 public companies in the “Commercial Banks” industry, but how does it compare to its peers? We will compare PrivateBancorp to related companies based on the strength of its dividends, valuation, risk, institutional ownership, earnings, analyst recommendations and profitability.

Volatility and Risk

PrivateBancorp has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, PrivateBancorp’s peers have a beta of 0.74, indicating that their average stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares PrivateBancorp and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PrivateBancorp N/A N/A 23.01
PrivateBancorp Competitors $338.81 million $71.86 million 21.75

PrivateBancorp’s peers have higher revenue and earnings than PrivateBancorp. PrivateBancorp is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares PrivateBancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PrivateBancorp 29.22% 11.73% 1.15%
PrivateBancorp Competitors 20.37% 8.67% 0.92%

Dividends

PrivateBancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. PrivateBancorp pays out 1.5% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.5% of their earnings in the form of a dividend.

Institutional and Insider Ownership

88.5% of PrivateBancorp shares are owned by institutional investors. Comparatively, 46.7% of shares of all “Commercial Banks” companies are owned by institutional investors. 3.9% of PrivateBancorp shares are owned by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for PrivateBancorp and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PrivateBancorp 0 3 0 0 2.00
PrivateBancorp Competitors 412 3009 2422 78 2.37

PrivateBancorp currently has a consensus price target of $57.00, suggesting a potential downside of 6.51%. As a group, “Commercial Banks” companies have a potential upside of 6.71%. Given PrivateBancorp’s peers stronger consensus rating and higher probable upside, analysts clearly believe PrivateBancorp has less favorable growth aspects than its peers.

PrivateBancorp Company Profile

PrivateBancorp, Inc. is a bank holding company for The PrivateBank and Trust Company (the Bank). Through the Bank, the Company provides customized business and personal financial services to middle market companies, as well as business owners, executives, entrepreneurs and families in the markets and communities it serves. The Company operates through three operating segments: Banking, Asset Management and Holding Company activities. The Banking segment consists of commercial and personal banking services. The Company’s Asset Management segment includes certain activities of its PrivateWealth group, including investment management, personal trust and estate administration, custodial and escrow services, investment management services for 401(k) plans and brokerage services. The activities of the Holding Company Activities segment include the direct and indirect ownership of its banking subsidiary, the issuance of debt and intersegment eliminations.

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