Analysis of First Foundation (NASDAQ:FFWM) and PCB Bancorp (NASDAQ:PCB)

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First Foundation (NASDAQ:FFWM – Get Rating) and PCB Bancorp (NASDAQ:PCB – Get Rating) are both small financial companies, but which is the better stock? We’ll compare the two companies based on their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk, and profitability.

risk and volatility

First Foundation has a beta of 1.24, meaning its stock price is 24% more volatile than the S&P 500. In comparison, PCB Bancorp has a beta of 0.77, meaning its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a summary of the current ratings and price targets for First Foundation and PCB Bancorp as reported by MarketBeat.

sell reviews keep ratings Buy reviews Strong buy recommendations rating score
First foundation 0 0 3 0 3.00
PCB Bancorp 0 1 0 0 2.00

First Foundation currently has a consensus price target of $31.00, suggesting a potential upside of 31.58%. PCB Bancorp has a consensus price target of $24.00, suggesting a potential upside of 9.34%. Given First Foundation’s stronger consensus rating and more likely upside potential, analysts clearly believe First Foundation is cheaper than PCB Bancorp.

profitability

This table compares the net margins, return on equity and return on total assets of First Foundation and PCB Bancorp.

net margins return on equity return on investment
First foundation 34.47% 13.36% 1.33%
PCB Bancorp 40.14% 16.32% 1.92%

profit and rating

This table compares the revenue, earnings per share, and valuation of First Foundation and PCB Bancorp.

gross receipts price/sales ratio net income earnings per share price-earnings ratio
First foundation $317.67 million 4.19 $109.51 million $2.42 9.74
PCB Bancorp $99.91 million 3.28 $40.10 million $2.62 8.38

First Foundation has higher revenues and profits than PCB Bancorp. PCB Bancorp is trading at a lower price-to-earnings multiple than First Foundation, suggesting it’s the cheaper of the two stocks at the moment.

dividends

First Foundation pays an annual dividend of $0.44 per share and has a dividend yield of 1.9%. PCB Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. The First Foundation distributes 18.2% of its earnings in the form of a dividend. PCB Bancorp pays out 22.9% 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 years to come. First Foundation has increased its dividend for 3 years in a row and PCB Bancorp has increased its dividend for 4 years in a row. PCB Bancorp is clearly the better dividend stock given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

69.4% of the shares of the First Foundation are owned by institutional investors. In comparison, 38.2% of PCB Bancorp stock is owned by institutional investors. Insiders own 12.6% of the shares of the First Foundation. By comparison, 22.5% of PCB Bancorp’s stock is owned by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a stock is poised for long-term growth.

summary

First Foundation beats PCB Bancorp on 10 of the 17 factors compared between the two stocks.

About the first foundation (received rating)

First Foundation Inc., through its subsidiaries, provides personal banking, business banking and private wealth management services in the United States. It operates through two segments, Banking and Wealth Management. The Company offers a range of bank deposit products including personal and business checking accounts, savings accounts, interest-bearing transferable withdrawal accounts, money market accounts and time deposit certificates; and lending products consisting of multifamily and single-family residential real estate loans, commercial real estate loans and commercial term loans and lines of credit, and consumer loans such as personal installment loans and lines of credit and home equity lines of credit. It also offers various specialized services including escrow services, internet and mobile banking, remote deposit collection services, merchant credit card services, ATM cards, Visa debit cards and business sweep accounts, as well as insurance broking services and equipment financing solutions. In addition, the company offers investment management and financial planning services; management of treasury; advice and coordination in the fields of estate planning, retirement planning and charitable and corporate ownership matters; and financial, investment and economic advice and related services. In addition, it provides support services, including processing and transmission of financial and economic data for non-profit organizations. The company operates through a network of 28 branch offices and 3 credit manufacturing offices located in California, Nevada, Texas and Hawaii. First Foundation Inc. was founded in 1985 and is headquartered in Dallas, Texas.

About PCB Bancorp (received rating)

PCB Bancorp logoPCB Bancorp acts as the banking holding company for Pacific City Bank, which provides a variety of banking products and services to small and medium-sized businesses, individuals and professionals in Southern California. The Company offers sight, savings, money market and time deposits and certificates of deposit; and remote deposit capture, courier deposit services, positive payment services, zero balance accounts and sweep accounts. It also offers real estate loans, including commercial and residential real estate, Small Business Administration (SBA) real estate, and home loans; commercial and industrial loans, such as B. Commercial Term Loans and Lines of Credit, SBA Business Term Loans and SBA Paycheck Protection Program Loans; and other consumer loans, which include auto-backed loans and personal loans. In addition, the company offers access to account balances, online transfers and online bill payment, as well as electronic delivery of customer statements; and mobile banking solutions, which include remote check deposit and mobile bill payment. In addition, it provides ATMs; and banking by telephone, mail, in person appointment, debit card, direct deposit and cashier’s check, as well as wealth management, remittance and automated clearing house services. The company operates through a network of 11 full-service offices in Los Angeles and Orange County, California; and full-service offices in Englewood Cliffs, New Jersey and Bayside, New York. It also operates 10 credit manufacturing offices in Irvine, Artesia, and Los Angeles, California; Annandale, Va.; Atlanta, GA; Chicago, IL; Bellevue, Wash.; Aurora, Colo.; Carollton, 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.



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