Head-To-Head Comparison: Private Bancorp of America (OTCMKTS:PBAM) versus PCB Bancorp (NASDAQ:PCB)

Private Bancorp of America (OTCMKTS:PBAM) and PCB Bancorp (NASDAQ:PCB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Private Bancorp of America	23.11%	17.54%	1.60%
PCB Bancorp	14.81%	9.54%	0.96%

Institutional and Insider Ownership

13.5% of Private Bancorp of America shares are owned by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are owned by institutional investors. 25.0% of PCB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Private Bancorp of America and PCB Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Private Bancorp of America	$161.24 million	1.95	$35.82 million	$6.60	8.22
PCB Bancorp	$191.91 million	1.55	$25.81 million	$1.94	10.74

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

Risk and Volatility

Private Bancorp of America has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Private Bancorp of America and PCB Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Private Bancorp of America	0	0	1	1	3.50
PCB Bancorp	0	2	0	0	2.00

Private Bancorp of America presently has a consensus target price of $60.50, suggesting a potential upside of 11.54%. PCB Bancorp has a consensus target price of $22.00, suggesting a potential upside of 5.62%. Given Private Bancorp of America’s stronger consensus rating and higher possible upside, analysts clearly believe Private Bancorp of America is more favorable than PCB Bancorp.

Summary

Private Bancorp of America beats PCB Bancorp on 10 of the 15 factors compared between the two stocks.

About Private Bancorp of America

Private Bancorp of America, Inc. operates as the bank holding company for CalPrivate Bank that provides banking products and services to individuals and businesses in California. The company offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts; unsecured lines of credit, personal credit lines, and term loans; additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services. It also provides treasury management, merchant card, bill pay, positive pay, e-statement, remote deposit capture, ACH origination, wire transfer, electronic payments and collections, electronic check acceptance, account reconciliation, cash vault, and gift and business credit cards, as well as funds management services. In addition, the company offers term credit facilities and loans, equipment and business expansion loans, working capital lines of credit, commercial real estate financing, construction financing, letters of credit, business start-up loans, loans for business acquisition and partner buyouts, owner-occupied commercial real estate loans, equipment, furniture and fixture, and other loans; and CDARS And ICS products. Further, it provides wealth management and legal services. The company has offices in La Jolla, San Diego, Coronado, Newport Beach, Beverly Hills, El Segundo, Temecula, Mission Valley, and Redlands. Private Bancorp of America, Inc. was founded in 2006 and is headquartered in La Jolla, California.

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.