Head-to-Head Analysis: Preferred Bank (NASDAQ: PFBC) and Banner (NASDAQ: BANR)
Head-to-Head Analysis: Preferred Bank (NASDAQ: PFBC) and Banner (NASDAQ: BANR)

Preferred Bank (NASDAQ: CBFPGet a rating) and Banner (NASDAQ: BANRGet a rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability, and analyst recommendations.

Dividends

Preferred Bank pays an annual dividend of $1.72 per share and has a dividend yield of 2.4%. Banner pays an annual dividend of $1.76 per share and has a dividend yield of 3.2%. Preferred Bank pays 26.8% of its profits as a dividend. Banner pays 30.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Preferred Bank increased its dividend for 1 consecutive year and Banner increased its dividend for 1 consecutive year.

Insider and Institutional Ownership

72.9% of Preferred Bank shares are held by institutional investors. By comparison, 83.8% of Banner’s shares are held by institutional investors. 1.4% of Banner shares are held by insiders. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Preferred Bank and Banner.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Preferred bank $218.78 million 4.87 $95.24 million $6.42 11.04
Banner $616.92 million 3.07 $201.05 million $5.77 9.58

Banner has higher revenue and profit than Preferred Bank. Banner trades at a lower price-to-earnings ratio than Preferred Bank, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of the current ratings of Preferred Bank and Banner, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Preferred bank 0 0 5 0 3.00
Banner 0 1 0 1 3.00

Preferred Bank currently has a consensus target price of $89.60, suggesting a potential upside of 26.45%. Banner has a consensus target price of $66.00, suggesting a potential upside of 19.44%. Given Preferred Bank’s likely higher upside, research analysts clearly believe that Preferred Bank is more favorable than Banner.

Profitability

This table compares the net margins, return on equity and return on assets of Preferred Bank and Banner.

Net margins Return on equity return on assets
Preferred bank 43.53% 16.95% 1.65%
Banner 32.62% 12.42% 1.26%

Risk and Volatility

Preferred Bank has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Banner has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Preferred Bank beats Banner on 10 out of 16 factors compared between the two stocks.

About Preferred Bank (Get a rating)

Preferred Bank provides a variety of commercial banking products and services to small and medium-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals and high net worth individuals in the United States. The company accepts checking, savings and money market deposit accounts; fixed-rate, fixed-maturity certificates of deposit for individuals and individuals; and individual retirement accounts. It also offers real estate mortgage loans secured by commercial, industrial, office, special purpose, and single and multi-family residential properties; housing construction loans; and commercial loans including working capital lines of credit, term loans for capital expenditures and commercial and standby letters of credit; and SBA loans. In addition, the Company offers trade finance services, including trade and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/ trust receipts, export financing, documentary collections and invoice purchase programs. Also, it provides various banking services to wealthy individuals residing in the Pacific Rim area; and remote deposit taking, and online and mobile banking. In addition, the company offers various banking services to doctors, accountants, lawyers, business owners and other professionals; and safe deposit boxes, account reconciliation, courier service and cash management services to manufacturing, service and distribution companies. As of December 31, 2021, it had eleven full-service branches in Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana and San Francisco; and a branch in Flushing, New York. The company was incorporated in 1991 and is headquartered in Los Angeles, California.

About the banner (Get a rating)

Banner Corporation operates as a bank holding company for Banner Bank which provides commercial banking and financial products and services to individuals, businesses and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts and certificates of deposit, as well as cash management services and savings plans. pension saving. The Company also offers commercial real estate loans, including real estate loans for homeowners, investment properties and multi-family residential properties; loans for construction, land and land development; residential mortgage loans; commercial business loans; agricultural loans; and consumer and other loans, such as home equity lines of credit, car, boat and recreational vehicle loans, and loans secured by deposit accounts. In addition, it is engaged in mortgage banking business through the origination and sale of one to four family and multi-family residential loans, as well as small business administration loans. Additionally, the company provides electronic and digital banking services. As of December 31, 2021, it operated 150 branches and 18 loan origination offices located in Washington, Oregon, California, Idaho and Utah. Banner Corporation was founded in 1890 and is headquartered in Walla Walla, Washington.



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