Reviewing American Business Bank (OTCMKTS:AMBZ) and First Republic Bank (NYSE:FRC)

American Business Bank (OTCMKTS:AMBZGet Rating) and First Republic Bank (NYSE:FRCGet Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

8.7% of American Business Bank shares are held by institutional investors. Comparatively, 94.4% of First Republic Bank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares American Business Bank and First Republic Bank’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Business Bank $115.40 million 3.07 $39.16 million $4.43 8.98
First Republic Bank $5.31 billion 4.91 $1.48 billion $7.88 18.39

First Republic Bank has higher revenue and earnings than American Business Bank. American Business Bank is trading at a lower price-to-earnings ratio than First Republic Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Business Bank and First Republic Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Business Bank 33.80% N/A N/A
First Republic Bank 27.93% 12.91% 0.88%

Analyst Recommendations

This is a breakdown of current ratings and target prices for American Business Bank and First Republic Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Business Bank 0 0 0 0 N/A
First Republic Bank 1 6 6 0 2.38

First Republic Bank has a consensus target price of $204.15, indicating a potential upside of 40.88%. Given First Republic Bank’s higher probable upside, analysts plainly believe First Republic Bank is more favorable than American Business Bank.

Volatility and Risk

American Business Bank has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, First Republic Bank has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Summary

First Republic Bank beats American Business Bank on 11 of the 12 factors compared between the two stocks.

American Business Bank Company Profile (Get Rating)

American Business Bank, a California-chartered bank, provides banking products and services to small and medium-sized firms, non-profits, business executives, and professionals in Southern California. The company offers credit and depository; treasury management; asset-based lending; SBA lending; international banking comprising money transfers, import and export commercial letters of credit, standby letters of credit, documentary and clean collections, and foreign currency exchange services; and consulting and referral services. It has seven offices in Los Angeles, Anaheim, Irvine, Torrance, Woodland Hills, Corona, and Ontario. The company was incorporated in 1998 and is headquartered in Los Angeles, California.

First Republic Bank Company Profile (Get Rating)

First Republic Bank, together with its subsidiaries, provides private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. It operates in two segments, Commercial Banking and Wealth Management. The company accepts deposit products, such as noninterest-bearing checking, interest-bearing checking, money market checking accounts, money market savings accounts, and passbook accounts, as well as certificates of deposit. It also offers a range of lending products that comprise residential mortgage loans, home equity lines of credit, multifamily loans, commercial real estate and construction loans, personal and business loans, single family construction loans, and other loans and lines of credit to businesses and individuals. The company's loans are secured by single family residences, multifamily buildings, and commercial real estate properties. In addition, it provides wealth management services, which include various investment strategies and products, online investment management, trust and custody, full service and online brokerage, financial and estate planning, and access to alternative investments, as well as investing, insurance, and foreign exchange services. Further, the company offers online and mobile banking services; refinancing services; and ATM and debit cards. As of December 31, 2021, it offered its services through 82 licensed deposit taking offices primarily in the San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; and Jackson, Wyoming. It also has 12 additional offices that offer lending, wealth management, or trust services. First Republic Bank was founded in 1985 and is headquartered in San Francisco, California.

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