Head to Head Analysis: California Business Bank (OTCMKTS:CABB) & PCB Bancorp (NASDAQ:PCB)

California Business Bank (OTCMKTS:CABB) and PCB Bancorp (NASDAQ:PCB) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for California Business Bank and PCB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Business Bank	0	0	0	0	0.00
PCB Bancorp	0	2	1	0	2.33

PCB Bancorp has a consensus target price of $24.50, suggesting a potential upside of 12.96%. Given PCB Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe PCB Bancorp is more favorable than California Business Bank.

Valuation & Earnings

This table compares California Business Bank and PCB Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Business Bank	N/A	N/A	N/A	N/A	N/A
PCB Bancorp	$112.70 million	2.74	$25.81 million	$2.39	9.08

PCB Bancorp has higher revenue and earnings than California Business Bank.

Insider & Institutional Ownership

33.0% of PCB Bancorp shares are owned by institutional investors. 25.9% of PCB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares California Business Bank and PCB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Business Bank	N/A	N/A	N/A
PCB Bancorp	17.08%	11.70%	1.11%

Risk & Volatility

California Business Bank has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

PCB Bancorp beats California Business Bank on 10 of the 10 factors compared between the two stocks.

About California Business Bank

California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was founded in 2005 and is headquartered in Irvine, California.

About PCB Bancorp

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.