Head to Head Analysis: International Bancshares (NASDAQ:IBOC) & Pacific Alliance Bank (OTCMKTS:PFBN)

Profitability

This table compares International Bancshares and Pacific Alliance Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	39.30%	14.84%	2.58%
Pacific Alliance Bank	N/A	N/A	N/A

Dividends

International Bancshares pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. International Bancshares pays out 21.3% of its earnings in the form of a dividend. International Bancshares has increased its dividend for 16 consecutive years. International Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares International Bancshares and Pacific Alliance Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$1.04 billion	4.13	$409.17 million	$6.57	10.56
Pacific Alliance Bank	$23.57 million	1.18	$1.43 million	N/A	N/A

International Bancshares has higher revenue and earnings than Pacific Alliance Bank.

Institutional and Insider Ownership

65.9% of International Bancshares shares are owned by institutional investors. 13.4% of International Bancshares 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.

Volatility and Risk

International Bancshares has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Pacific Alliance Bank has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Summary

International Bancshares beats Pacific Alliance Bank on 11 of the 12 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 Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.