Pacific Mercantile Bancorp (NASDAQ:PMBC) and Peoples Bancorp (NASDAQ:PEBO) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Risk & Volatility
Pacific Mercantile Bancorp has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Peoples Bancorp has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Pacific Mercantile Bancorp and Peoples Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Mercantile Bancorp||0||0||2||0||3.00|
Pacific Mercantile Bancorp currently has a consensus price target of $11.00, indicating a potential upside of 25.00%. Peoples Bancorp has a consensus price target of $38.50, indicating a potential upside of 10.66%. Given Pacific Mercantile Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pacific Mercantile Bancorp is more favorable than Peoples Bancorp.
Earnings & Valuation
This table compares Pacific Mercantile Bancorp and Peoples Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pacific Mercantile Bancorp||$55.95 million||3.68||$10.44 million||N/A||N/A|
|Peoples Bancorp||$179.18 million||3.79||$38.47 million||$2.28||15.26|
Peoples Bancorp has higher revenue and earnings than Pacific Mercantile Bancorp.
Insider and Institutional Ownership
45.4% of Pacific Mercantile Bancorp shares are held by institutional investors. Comparatively, 61.7% of Peoples Bancorp shares are held by institutional investors. 4.3% of Pacific Mercantile Bancorp shares are held by company insiders. Comparatively, 3.0% of Peoples Bancorp shares are held 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.
This table compares Pacific Mercantile Bancorp and Peoples Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Mercantile Bancorp||40.11%||21.40%||1.95%|
Peoples Bancorp pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. Pacific Mercantile Bancorp does not pay a dividend. Peoples Bancorp pays out 49.1% of its earnings in the form of a dividend. Peoples Bancorp has increased its dividend for 2 consecutive years.
About Pacific Mercantile Bancorp
Pacific Mercantile Bancorp operates as the holding company for Pacific Mercantile Bank that provides a range of commercial banking products and services to small and medium-size businesses, professional firms, and individuals in Southern California, the United States. The company's deposit products include checking accounts, interest-bearing term deposit accounts, savings and money market deposits, and time deposits. It also offers various loan products, such as commercial loans and credit lines, accounts receivable and inventory financing, small business administration guaranteed business loans, owner-occupied commercial real estate loans, working capital lines of credit and asset based lending, growth capital loans, equipment financing, letters of credit, and corporate credit cards. In addition, the company provides cash and treasury management solutions, automated clearinghouse payment and wire solutions, fraud protection services, remote deposit capture services, courier services, and online banking services; and letters of credit and import/export financing services. As of March 5, 2018, it operated seven offices located in Orange, Los Angeles, San Diego, and San Bernardino counties in Southern California. The company was founded in 1998 and is based in Costa Mesa, California.
About Peoples Bancorp
Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and retail banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and provides commercial real estate construction loans, other commercial real estate loans, commercial and industrial loans, residential real estate loans, home equity lines of credit, and indirect and other consumer loans. It also offers overdraft protection services; debit and automated teller machine (ATM) cards; corporate and personal trust services; safe deposit rental facilities; money orders and cashier's checks; and telephone, mobile, and Internet-based banking services. In addition, the company provides various life, health, and property and casualty insurance products; and fiduciary and asset management and administration services, as well as employee benefit plans. Further, it offers brokerage services through an unaffiliated registered broker-dealers; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing services through joint marketing arrangements with third parties. As of January 23, 2018, the company operated 74 locations, including 65 full-service bank branches and 72 ATMs in Ohio, West Virginia, and Kentucky. Peoples Bancorp Inc. was founded in 1902 and is based in Marietta, Ohio.
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