Pacific Valley Bancorp (OTCMKTS:PVBK) & Pinnacle Bank (OTCMKTS:PBNK) Critical Review

Risk and Volatility

Pinnacle Bank has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Pacific Valley Bancorp has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Insider & Institutional Ownership

8.4% of Pinnacle Bank shares are owned by institutional investors. Comparatively, 2.8% of Pacific Valley Bancorp shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bank	9.61%	4.58%	0.54%
Pacific Valley Bancorp	11.23%	N/A	N/A

Valuation & Earnings

This table compares Pinnacle Bank and Pacific Valley Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bank	$50.63 million	2.12	$5.45 million	$0.81	22.22
Pacific Valley Bancorp	$33.09 million	1.48	$3.59 million	$0.72	12.50

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

Summary

Pinnacle Bank beats Pacific Valley Bancorp on 9 of the 10 factors compared between the two stocks.

About Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.

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.