PCB Bancorp (NASDAQ:PCB) and Flagstar Bank, National Association (NYSE:FLG) Head-To-Head Review

Flagstar Bank, National Association (NYSE:FLG) and PCB Bancorp (NASDAQ:PCB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Dividends

Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. PCB Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Flagstar Bank, National Association pays out 26.7% of its earnings in the form of a dividend. PCB Bancorp pays out 29.7% 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. PCB Bancorp has increased its dividend for 7 consecutive years. PCB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

67.9% of Flagstar Bank, National Association shares are held by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are held by institutional investors. 21.4% of Flagstar Bank, National Association shares are held by company insiders. Comparatively, 27.0% of PCB Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Flagstar Bank, National Association and PCB Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flagstar Bank, National Association	$4.81 billion	0.91	-$177.00 million	$0.15	70.59
PCB Bancorp	$209.37 million	2.04	$37.45 million	$2.96	10.26

PCB Bancorp has lower revenue, but higher earnings than Flagstar Bank, National Association. PCB Bancorp is trading at a lower price-to-earnings ratio than Flagstar Bank, National Association, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Flagstar Bank, National Association has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Flagstar Bank, National Association and PCB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Bank, National Association	2.22%	1.45%	0.12%
PCB Bancorp	19.92%	13.05%	1.26%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Flagstar Bank, National Association and PCB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Bank, National Association	3	3	9	0	2.40
PCB Bancorp	0	2	0	2	3.00

Flagstar Bank, National Association currently has a consensus price target of $14.12, suggesting a potential upside of 33.39%. PCB Bancorp has a consensus price target of $27.75, suggesting a potential downside of 8.63%. Given Flagstar Bank, National Association’s higher probable upside, research analysts clearly believe Flagstar Bank, National Association is more favorable than PCB Bancorp.

Summary

PCB Bancorp beats Flagstar Bank, National Association on 11 of the 18 factors compared between the two stocks.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.

About PCB Bancorp

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. 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.