Pacific Premier Bancorp (NASDAQ:PPBI) versus Security Bancorp (OTCMKTS:SCYT) Critical Survey

Pacific Premier Bancorp (NASDAQ:PPBI) and Security Bancorp (OTCMKTS:SCYT) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pacific Premier Bancorp and Security Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Premier Bancorp	0	2	0	0	2.00
Security Bancorp	0	0	0	0	0.00

Pacific Premier Bancorp presently has a consensus target price of $27.50, suggesting a potential upside of 16.72%. Given Pacific Premier Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Pacific Premier Bancorp is more favorable than Security Bancorp.

Profitability

This table compares Pacific Premier Bancorp and Security Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Premier Bancorp	16.13%	4.85%	0.80%
Security Bancorp	18.52%	N/A	N/A

Volatility & Risk

Pacific Premier Bancorp has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Security Bancorp has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.

Insider & Institutional Ownership

93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 2.3% of Pacific Premier Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Pacific Premier Bancorp and Security Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Premier Bancorp	$905.41 million	2.52	$158.80 million	$1.42	16.59
Security Bancorp	$22.38 million	1.27	$4.06 million	$11.61	6.51

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

Dividends

Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.6%. Security Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Pacific Premier Bancorp pays out 93.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Security Bancorp pays out 8.6% of its earnings in the form of a dividend.

Summary

Pacific Premier Bancorp beats Security Bancorp on 12 of the 15 factors compared between the two stocks.

About Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.

About Security Bancorp

Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking products and services to individual and corporate customers in Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; and commercial loans, including installment loans, lines of credit, and real estate lending. In addition, the company provides financial services, as well as online, mobile, and telephone banking services. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.