Pacific Valley Bancorp (OTCMKTS:PVBK) versus Prosperity Bancshares (NYSE:PB) Financial Analysis

Prosperity Bancshares (NYSE:PB) and Pacific Valley Bancorp (OTCMKTS:PVBK) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations for Prosperity Bancshares and Pacific Valley Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosperity Bancshares	0	6	10	0	2.63
Pacific Valley Bancorp	0	0	0	0	0.00

Prosperity Bancshares presently has a consensus price target of $80.21, suggesting a potential upside of 13.53%. Given Prosperity Bancshares’ stronger consensus rating and higher possible upside, research analysts plainly believe Prosperity Bancshares is more favorable than Pacific Valley Bancorp.

Risk and Volatility

Prosperity Bancshares has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Pacific Valley Bancorp has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Profitability

This table compares Prosperity Bancshares and Pacific Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prosperity Bancshares	30.28%	7.06%	1.37%
Pacific Valley Bancorp	12.14%	N/A	N/A

Earnings & Valuation

This table compares Prosperity Bancshares and Pacific Valley Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosperity Bancshares	$1.19 billion	5.63	$479.39 million	$5.61	12.59
Pacific Valley Bancorp	$30.26 million	1.59	$4.42 million	$0.79	12.34

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

Institutional and Insider Ownership

80.7% of Prosperity Bancshares shares are owned by institutional investors. Comparatively, 2.8% of Pacific Valley Bancorp shares are owned by institutional investors. 4.2% of Prosperity Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Prosperity Bancshares beats Pacific Valley Bancorp on 14 of the 14 factors compared between the two stocks.

About Prosperity Bancshares

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.

About Pacific Valley Bancorp

Pacific Valley Bancorp operates as the bank holding company for Pacific Valley Bank that provides various banking products and services in the United States. The company offers personal and business banking, including checking accounts, savings and money market accounts, and certificates of deposit; and online solutions, such as online and mobile banking, bill pay, remote deposit capture, positive pay, e-statements, and order checks. It also provides commercial or agriculture lines of credit, commercial or agriculture terms loans, commercial constructions loans, agriculture production lending, and government guaranteed loan programs; and debit card, incoming wire instructions, ATM locator, fraud prevention, identity theft, and FDIC insurance estimator services. The company was founded in 2004 and is headquartered in Salinas, California.