Financial Contrast: Banc of California (BANC) versus The Competition

Banc of California (NYSE:BANC) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Banc of California to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Volatility and Risk

Banc of California has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Banc of California’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

86.9% of Banc of California shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 2.8% of Banc of California shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Banc of California and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banc of California	0	3	7	0	2.70
Banc of California Competitors	7484	30232	27813	1478	2.35

Banc of California presently has a consensus price target of $22.38, indicating a potential upside of 23.11%. As a group, “Banks” companies have a potential upside of 14.24%. Given Banc of California’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Banc of California is more favorable than its rivals.

Profitability

This table compares Banc of California and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banc of California	-0.58%	8.51%	0.72%
Banc of California Competitors	15.65%	9.43%	0.93%

Dividends

Banc of California pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. Banc of California pays out -141.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Banc of California and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banc of California	$1.82 billion	$228.97 million	-53.46
Banc of California Competitors	$9.95 billion	$2.42 billion	21.29

Banc of California’s rivals have higher revenue and earnings than Banc of California. Banc of California is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Banc of California rivals beat Banc of California on 9 of the 15 factors compared.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.