Prosperity Bancshares (NYSE:PB) versus Pacific Valley Bancorp (OTCMKTS:PVBK) Financial Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosperity Bancshares	$1.79 billion	3.75	$479.39 million	$5.61	12.60
Pacific Valley Bancorp	$30.26 million	1.59	$4.42 million	$0.79	12.34

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prosperity Bancshares	30.28%	7.06%	1.37%
Pacific Valley Bancorp	12.14%	N/A	N/A

Insider & Institutional Ownership

80.7% of Prosperity Bancshares shares are owned by institutional investors. Comparatively, 2.8% of Pacific Valley Bancorp shares are owned by institutional investors. 4.2% of Prosperity Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Prosperity Bancshares and Pacific Valley Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosperity Bancshares	0	6	10	0	2.63
Pacific Valley Bancorp	0	0	0	0	0.00

Prosperity Bancshares presently has a consensus target price of $80.21, indicating a potential upside of 13.43%. Given Prosperity Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Prosperity Bancshares is more favorable than Pacific Valley Bancorp.

Volatility & Risk

Prosperity Bancshares has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Pacific Valley Bancorp has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Summary

Prosperity Bancshares beats Pacific Valley Bancorp on 14 of the 14 factors compared between the two stocks.

About Prosperity Bancshares

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, 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.