Reviewing PCB Bancorp (NASDAQ:PCB) and Cullen/Frost Bankers (NYSE:CFR)

PCB Bancorp (NASDAQ:PCB) and Cullen/Frost Bankers (NYSE:CFR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares PCB Bancorp and Cullen/Frost Bankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PCB Bancorp	15.82%	10.58%	1.02%
Cullen/Frost Bankers	21.20%	15.46%	1.18%

Valuation and Earnings

This table compares PCB Bancorp and Cullen/Frost Bankers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCB Bancorp	$191.91 million	1.48	$25.81 million	$2.13	9.31
Cullen/Frost Bankers	$2.85 billion	2.77	$582.54 million	$9.29	13.21

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

Analyst Ratings

This is a summary of recent ratings for PCB Bancorp and Cullen/Frost Bankers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCB Bancorp	0	2	1	0	2.33
Cullen/Frost Bankers	3	9	2	1	2.07

PCB Bancorp currently has a consensus price target of $22.25, indicating a potential upside of 12.15%. Cullen/Frost Bankers has a consensus price target of $137.62, indicating a potential upside of 12.16%. Given Cullen/Frost Bankers’ higher probable upside, analysts clearly believe Cullen/Frost Bankers is more favorable than PCB Bancorp.

Volatility & Risk

PCB Bancorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Dividends

PCB Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Cullen/Frost Bankers pays an annual dividend of $4.00 per share and has a dividend yield of 3.3%. PCB Bancorp pays out 37.6% of its earnings in the form of a dividend. Cullen/Frost Bankers pays out 43.1% 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. PCB Bancorp has increased its dividend for 7 consecutive years and Cullen/Frost Bankers has increased its dividend for 32 consecutive years. PCB Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

33.0% of PCB Bancorp shares are held by institutional investors. Comparatively, 86.9% of Cullen/Frost Bankers shares are held by institutional investors. 25.9% of PCB Bancorp shares are held by company insiders. Comparatively, 2.9% of Cullen/Frost Bankers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Cullen/Frost Bankers beats PCB Bancorp on 14 of the 18 factors compared between the two stocks.

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.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.