Critical Contrast: PCB Bancorp (NASDAQ:PCB) versus International Bancshares (NASDAQ:IBOC)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for International Bancshares and PCB Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
PCB Bancorp	0	3	0	1	2.50

International Bancshares currently has a consensus price target of $85.00, indicating a potential upside of 11.07%. PCB Bancorp has a consensus price target of $25.50, indicating a potential downside of 14.46%. Given International Bancshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe International Bancshares is more favorable than PCB Bancorp.

Institutional and Insider Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are held by institutional investors. 13.4% of International Bancshares shares are held by insiders. Comparatively, 27.0% of PCB Bancorp shares 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.

Earnings & Valuation

This table compares International Bancshares and PCB Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.06 billion	4.51	$412.29 million	$6.70	11.42
PCB Bancorp	$209.37 million	2.03	$37.45 million	$2.78	10.72

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

Profitability

This table compares International Bancshares and PCB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	39.33%	13.16%	2.52%
PCB Bancorp	19.03%	12.70%	1.21%

Dividends

International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 1.9%. PCB Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.0%. International Bancshares pays out 21.8% of its earnings in the form of a dividend. PCB Bancorp pays out 31.7% 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. International Bancshares has increased its dividend for 16 consecutive years and PCB Bancorp has increased its dividend for 7 consecutive years.

Volatility and Risk

International Bancshares has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Summary

International Bancshares beats PCB Bancorp on 15 of the 18 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

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.