Banc of California (NYSE:BANC) vs. PCB Bancorp (NASDAQ:PCB) Financial Contrast

PCB Bancorp (NASDAQ:PCB) and Banc of California (NYSE:BANC) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Risk & Volatility

PCB Bancorp has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Banc of California has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Dividends

PCB Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. Banc of California pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. PCB Bancorp pays out 33.5% of its earnings in the form of a dividend. Banc of California pays out 38.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PCB Bancorp has raised 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.

Profitability

This table compares PCB Bancorp and Banc of California’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PCB Bancorp	17.08%	11.70%	1.11%
Banc of California	11.49%	8.00%	0.70%

Earnings & Valuation

This table compares PCB Bancorp and Banc of California”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCB Bancorp	$112.70 million	2.74	$25.81 million	$2.39	9.08
Banc of California	$1.07 billion	2.60	$126.89 million	$1.04	17.73

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

Insider & Institutional Ownership

33.0% of PCB Bancorp shares are owned by institutional investors. Comparatively, 86.9% of Banc of California shares are owned by institutional investors. 25.9% of PCB Bancorp shares are owned by insiders. Comparatively, 2.7% of Banc of California shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PCB Bancorp and Banc of California, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCB Bancorp	0	2	1	0	2.33
Banc of California	0	2	8	1	2.91

PCB Bancorp currently has a consensus target price of $24.50, suggesting a potential upside of 12.96%. Banc of California has a consensus target price of $19.25, suggesting a potential upside of 4.39%. Given PCB Bancorp’s higher possible upside, equities analysts plainly believe PCB Bancorp is more favorable than Banc of California.

Summary

PCB Bancorp beats Banc of California on 10 of the 18 factors compared between the two stocks.

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.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.