RBB Bancorp (NASDAQ:RBB) vs. Plumas Bancorp (NASDAQ:PLBC) Financial Survey

RBB Bancorp (NASDAQ:RBB) and Plumas Bancorp (NASDAQ:PLBC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares RBB Bancorp and Plumas Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$238.00 million	1.62	$31.95 million	$1.83	12.37
Plumas Bancorp	$112.17 million	3.18	$29.62 million	$4.54	11.26

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

Profitability

This table compares RBB Bancorp and Plumas Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	13.42%	6.19%	0.77%
Plumas Bancorp	26.40%	15.32%	1.76%

Institutional and Insider Ownership

40.1% of RBB Bancorp shares are owned by institutional investors. Comparatively, 41.7% of Plumas Bancorp shares are owned by institutional investors. 4.6% of RBB Bancorp shares are owned by company insiders. Comparatively, 9.0% of Plumas Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. Plumas Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.6%. RBB Bancorp pays out 35.0% of its earnings in the form of a dividend. Plumas Bancorp pays out 29.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Plumas Bancorp has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for RBB Bancorp and Plumas Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	4	0	0	2.00
Plumas Bancorp	0	0	3	0	3.00

RBB Bancorp currently has a consensus price target of $22.00, suggesting a potential downside of 2.78%. Plumas Bancorp has a consensus price target of $54.50, suggesting a potential upside of 6.65%. Given Plumas Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Plumas Bancorp is more favorable than RBB Bancorp.

Volatility & Risk

RBB Bancorp has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Plumas Bancorp has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Summary

Plumas Bancorp beats RBB Bancorp on 12 of the 17 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.