Pinnacle Bank (OTCMKTS:PBNK) & Private Bancorp of America (OTCMKTS:PBAM) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Private Bancorp of America	24.04%	17.10%	1.66%
Pinnacle Bank	16.62%	8.37%	0.97%

Insider & Institutional Ownership

13.5% of Private Bancorp of America shares are owned by institutional investors. Comparatively, 8.4% of Pinnacle Bank shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Private Bancorp of America has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Pinnacle Bank has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Private Bancorp of America and Pinnacle Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Private Bancorp of America	0	1	1	1	3.00
Pinnacle Bank	0	0	0	0	0.00

Private Bancorp of America currently has a consensus target price of $74.00, indicating a potential upside of 30.40%. Given Private Bancorp of America’s stronger consensus rating and higher possible upside, research analysts plainly believe Private Bancorp of America is more favorable than Pinnacle Bank.

Valuation & Earnings

This table compares Private Bancorp of America and Pinnacle Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Private Bancorp of America	$161.24 million	2.01	$35.82 million	$7.04	8.06
Pinnacle Bank	$53.91 million	2.08	$8.85 million	$0.86	21.98

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

Summary

Private Bancorp of America beats Pinnacle Bank on 11 of the 14 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 Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.