Comparing Paragon Commercial (PBNC) & Atlantic Capital Bancshares (ACBI)

Paragon Commercial (NASDAQ: PBNC) and Atlantic Capital Bancshares (NASDAQ:ACBI) are both small-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Paragon Commercial and Atlantic Capital Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paragon Commercial 0 2 0 0 2.00
Atlantic Capital Bancshares 0 3 1 0 2.25

Atlantic Capital Bancshares has a consensus price target of $21.50, indicating a potential upside of 21.13%. Given Atlantic Capital Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Atlantic Capital Bancshares is more favorable than Paragon Commercial.

Valuation and Earnings

This table compares Paragon Commercial and Atlantic Capital Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paragon Commercial $55.46 million 5.50 $13.39 million $2.67 20.91
Atlantic Capital Bancshares $106.55 million 4.29 $13.39 million $0.51 34.80

Paragon Commercial is trading at a lower price-to-earnings ratio than Atlantic Capital Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Paragon Commercial and Atlantic Capital Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paragon Commercial 22.89% 10.28% 0.91%
Atlantic Capital Bancshares 12.34% 4.39% 0.51%

Insider and Institutional Ownership

32.4% of Paragon Commercial shares are owned by institutional investors. Comparatively, 79.1% of Atlantic Capital Bancshares shares are owned by institutional investors. 23.3% of Paragon Commercial shares are owned by company insiders. Comparatively, 3.1% of Atlantic Capital Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Paragon Commercial Company Profile

Paragon Commercial Corporation is a bank holding company for Paragon Bank (the Bank). The Bank is engaged in general commercial banking in Wake and Mecklenburg Counties, North California. The Bank offers private banking and commercial banking services. Its private banking services include deposit services, such as debit cards and safe deposit boxes. Its commercial banking services include deposit services, such as business checking, nonprofit checking and business money market; courier service; remote deposit capture; merchant services; zero balance accounts; cash vault/deposit service, and account management services, such as automated sweeps and reconciliation. It also offers mobile and online banking services. Its borrowing services include commercial loans and lines, corporate credit cards and home purchase/refinance. It also offers wealth management and investment services.

Atlantic Capital Bancshares Company Profile

Atlantic Capital Bancshares, Inc. is the bank holding company for Atlantic Capital Bank (the Bank). The Bank operates as a commercial bank. The Bank provides an array of credit, treasury management and deposit products and services to growth businesses, middle market corporations, commercial real estate developers and investors, and private clients. Its wealth management division offers financial planning, trust administration, investment management, brokerage and estate planning services. It also provides selected capital markets, mortgage banking, and electronic banking services to its corporate, business and individual clients. Its private banking credit products include loans to individuals for personal and investment purposes, such as secured installment and term loans, and home equity lines of credit. Its specialty corporate financial services include payments industry banking, financial institutions banking, capital markets services and specialty commercial lending.

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