Head to Head Contrast: First Financial Bankshares (NASDAQ:FFIN) and PCB Bancorp (NASDAQ:PCB)

First Financial Bankshares (NASDAQ:FFIN) and PCB Bancorp (NASDAQ:PCB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Dividends

First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 2.2%. PCB Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. First Financial Bankshares pays out 44.2% of its earnings in the form of a dividend. PCB Bancorp pays out 37.6% 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. First Financial Bankshares has increased its dividend for 15 consecutive years and PCB Bancorp has increased its dividend for 7 consecutive years. PCB Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

First Financial Bankshares has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Institutional and Insider Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are owned by institutional investors. 4.0% of First Financial Bankshares shares are owned by company insiders. Comparatively, 25.0% of PCB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares First Financial Bankshares and PCB Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$752.91 million	6.52	$223.51 million	$1.72	19.95
PCB Bancorp	$191.91 million	1.61	$25.81 million	$2.13	10.09

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

Analyst Recommendations

This is a summary of recent ratings for First Financial Bankshares and PCB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	4	0	0	2.00
PCB Bancorp	0	2	0	0	2.00

First Financial Bankshares currently has a consensus target price of $39.00, suggesting a potential upside of 13.64%. PCB Bancorp has a consensus target price of $22.25, suggesting a potential upside of 3.49%. Given First Financial Bankshares’ higher probable upside, analysts clearly believe First Financial Bankshares is more favorable than PCB Bancorp.

Profitability

This table compares First Financial Bankshares and PCB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	31.01%	14.69%	1.75%
PCB Bancorp	15.82%	10.58%	1.02%

Summary

First Financial Bankshares beats PCB Bancorp on 11 of the 15 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, 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.