Head to Head Survey: Texas Capital Bancshares (NASDAQ:TCBI) versus Private Bancorp of America (OTCMKTS:PBAM)

Private Bancorp of America (OTCMKTS:PBAM) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Risk & Volatility

Private Bancorp of America has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

13.5% of Private Bancorp of America shares are held by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are held by institutional investors. 1.9% of Texas Capital Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Private Bancorp of America and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Private Bancorp of America	24.01%	16.38%	1.66%
Texas Capital Bancshares	16.52%	10.05%	1.03%

Valuation & Earnings

This table compares Private Bancorp of America and Texas Capital Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Private Bancorp of America	$172.31 million	2.43	$40.67 million	$7.20	10.17
Texas Capital Bancshares	$2.00 billion	2.29	$330.24 million	$6.80	15.23

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Private Bancorp of America and Texas Capital Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Private Bancorp of America	0	0	3	2	3.40
Texas Capital Bancshares	3	7	4	0	2.07

Private Bancorp of America presently has a consensus price target of $86.33, suggesting a potential upside of 17.94%. Texas Capital Bancshares has a consensus price target of $100.75, suggesting a potential downside of 2.73%. Given Private Bancorp of America’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Private Bancorp of America is more favorable than Texas Capital Bancshares.

Summary

Private Bancorp of America beats Texas Capital Bancshares on 8 of the 15 factors compared between the two stocks.

About Private Bancorp of America

Private Bancorp of America, Inc. operates as the bank holding company for CalPrivate Bank that provides banking products and services to individuals and businesses in California. The company offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts; unsecured lines of credit, personal credit lines, and term loans; additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services. It also provides treasury management, merchant card, bill pay, positive pay, e-statement, remote deposit capture, ACH origination, wire transfer, electronic payments and collections, electronic check acceptance, account reconciliation, cash vault, and gift and business credit cards, as well as funds management services. In addition, the company offers term credit facilities and loans, equipment and business expansion loans, working capital lines of credit, commercial real estate financing, construction financing, letters of credit, business start-up loans, loans for business acquisition and partner buyouts, owner-occupied commercial real estate loans, equipment, furniture and fixture, and other loans; and CDARS And ICS products. Further, it provides wealth management and legal services. The company has offices in La Jolla, San Diego, Coronado, Newport Beach, Beverly Hills, El Segundo, Temecula, Mission Valley, and Redlands. Private Bancorp of America, Inc. was founded in 2006 and is headquartered in La Jolla, California.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.