Pacific Alliance Bank (OTCMKTS:PFBN) and First Financial Bankshares (NASDAQ:FFIN) Head to Head Review

Pacific Alliance Bank (OTCMKTS:PFBN) and First Financial Bankshares (NASDAQ:FFIN) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Valuation and Earnings

This table compares Pacific Alliance Bank and First Financial Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Alliance Bank	$23.57 million	1.18	$1.43 million	N/A	N/A
First Financial Bankshares	$752.91 million	6.44	$223.51 million	$1.72	19.71

First Financial Bankshares has higher revenue and earnings than Pacific Alliance Bank.

Risk & Volatility

Pacific Alliance Bank has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, First Financial Bankshares has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. 4.0% of First Financial Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Pacific Alliance Bank and First Financial Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Alliance Bank	N/A	N/A	N/A
First Financial Bankshares	31.01%	14.69%	1.75%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pacific Alliance Bank and First Financial Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Alliance Bank	0	0	0	0	0.00
First Financial Bankshares	0	4	0	0	2.00

First Financial Bankshares has a consensus price target of $39.25, indicating a potential upside of 15.78%. Given First Financial Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe First Financial Bankshares is more favorable than Pacific Alliance Bank.

Dividends

Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 2.2%. First Financial Bankshares pays out 44.2% of its earnings in the form of a dividend. First Financial Bankshares has increased its dividend for 15 consecutive years. First Financial Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First Financial Bankshares beats Pacific Alliance Bank on 13 of the 14 factors compared between the two stocks.

About Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.