PCB Bancorp (NASDAQ:PCB – Get Rating) and Union Bankshares (NASDAQ:UNB – Get Rating) are both small cap finance companies, but which is the better company? We’ll compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of PCB Bancorp and Union Bankshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
BPC Bancorp $99.91 million 2.71 $40.10 million $2.74 6.60
Union Bankshares $52.24 million 2.19 $13.17 million $2.85 8.95

PCB Bancorp has higher revenue and profit than Union Bankshares. PCB Bancorp trades at a lower price-to-earnings ratio than Union Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of PCB Bancorp and Union Bankshares.

Net margins Return on equity return on assets
BPC Bancorp 40.19% 16.65% 1.96%
Union Bankshares 24.66% 16.01% 1.10%

Dividends

PCB Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. Union Bankshares pays an annual dividend of $1.40 per share and has a dividend yield of 5.5%. PCB Bancorp pays 21.9% of its profits as a dividend. Union Bankshares pays 49.1% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. PCB Bancorp has increased its dividend for 4 consecutive years and Union Bankshares has increased its dividend for 8 consecutive years. Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations for PCB Bancorp and Union Bankshares, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
BPC Bancorp 0 1 0 0 2.00
Union Bankshares 0 0 0 0 N / A

PCB Bancorp currently has a consensus target price of $24.00, suggesting a potential upside of 32.67%. Given PCB Bancorp’s possible higher upside, equity research analysts clearly believe that PCB Bancorp is more favorable than Union Bankshares.

Insider and Institutional Ownership

37.9% of PCB Bancorp shares are held by institutional investors. By comparison, 13.6% of Union Bankshares’ shares are held by institutional investors. 24.1% of PCB Bancorp shares are held by insiders. By comparison, 1.3% of Union Bankshares shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Volatility and risk

PCB Bancorp has a beta of 0.78, meaning its stock price is 22% less volatile than the S&P 500. In comparison, Union Bankshares has a beta of 0.82, meaning its stock price is 18 % less volatile than the S&P 500.

Summary

PCB Bancorp beats Union Bankshares on 10 out of 15 factors compared between the two stocks.

About PCB Bancorp (Get an evaluation)

PCB Bancorp operates as a bank holding company for Pacific City Bank which provides various banking products and services to small and medium businesses, individuals and professionals in Southern California. The company offers demand, savings, money market and term deposits, as well as certificates of deposit; and remote deposit capture, courier deposit services, positive pay services, zero balance accounts and transfer accounts. It also offers home loans, including commercial and residential loans, Small Business Administration (SBA) property and construction loans; commercial and industrial loans, such as commercial term loans and lines of credit, SBA commercial term loans and SBA Paycheck Protection Program loans; and other consumer loans including secured auto loans and personal loans. In addition, the Company offers access to account balances, online transfers, online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill payment. Additionally, it provides ATMs; and banking by telephone, mail, personal appointment, debit cards, direct deposit and cashier’s checks, as well as cash management, wire transfers and automated clearing house services. The company operates through a network of 11 full-service branches in Los Angeles and Orange Counties, California; and a full-service branch in Englewood Cliffs, New Jersey, and Bayside, New York. It also operates 10 loan production offices in Irvine, Artesia and Los Angeles, California; Annandale, Virginia; Atlanta, Georgia; Chicago, Ill.; Bellevue, Wash.; Aurora, Colorado; Carrollton, Texas; and New York, New York. 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.

About Union Bankshares (Get an evaluation)

Union Bankshares logoUnion Bankshares, Inc. operates as a bank holding company for Union Bank which provides retail, commercial and municipal banking products and services in northern Vermont and New Hampshire. It offers retail deposit services, such as personal checks, savings accounts, money market, IRA/SEP/KEOGH and health savings accounts, as well as certificates of deposit. The company also offers commercial real estate loans; commercial loans for plant and equipment, working capital, building renovation and other business purposes to business owners and investors; loans guaranteed by the Small Business Administration; home improvement loans and overdrafts; and residential construction and mortgages. In addition, it offers online cash management services, including account reconciliation, credit card deposit, automated clearinghouse issuance, wire transfers, and overnight deposit services; merchant credit card services for the deposit and immediate credit of sales invoices; remote deposit entry services; and online mortgage application services. Additionally, the company provides business checking accounts; stand-by letters of credit, bank checks or money orders and safes; ATM services; debit cards; telephone, Internet and mobile banking services; and asset management, fiduciary and fiduciary services. The Company offers retail banking services to individuals; and commercial banking services to small and medium-sized businesses, partnerships and sole proprietorships, as well as non-profit organizations, local municipalities and school districts. It operates 18 banking offices, 3 lending centers and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.



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