PacWest Bancorp (NASDAQ: PACW) is one of 310 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare PacWest Bancorp to related companies based on the strength of its dividends, risk, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Institutional and Insider Ownership
82.4% of PacWest Bancorp shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 1.0% of PacWest Bancorp shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for PacWest Bancorp and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PacWest Bancorp Competitors||2389||8803||8766||370||2.35|
PacWest Bancorp presently has a consensus price target of $53.64, suggesting a potential upside of 2.40%. As a group, “Banks” companies have a potential downside of 11.44%. Given PacWest Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe PacWest Bancorp is more favorable than its competitors.
Valuation & Earnings
This table compares PacWest Bancorp and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|PacWest Bancorp||$1.13 billion||$352.16 million||17.64|
|PacWest Bancorp Competitors||$5.58 billion||$833.70 million||384.99|
PacWest Bancorp’s competitors have higher revenue and earnings than PacWest Bancorp. PacWest Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
PacWest Bancorp has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, PacWest Bancorp’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.
This table compares PacWest Bancorp and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PacWest Bancorp Competitors||18.25%||8.23%||0.93%|
PacWest Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 3.8%. PacWest Bancorp pays out 67.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.0% of their earnings in the form of a dividend.
PacWest Bancorp beats its competitors on 8 of the 15 factors compared.
About PacWest Bancorp
PacWest Bancorp is a bank holding company for Pacific Western Bank (the Bank). The Company is focused on relationship-based business banking to small, middle-market and venture-backed businesses. As of October 23, 2017, the Bank offered a range of loan and deposit products and services through 83 branches located throughout the state of California, one branch located in Durham, North Carolina, and several loan production offices located in cities across the country. The Company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. It offers products and services through its CapitalSource and Square 1 Bank divisions. In addition, the Company provides investment advisory and asset management services to select clients through Square 1 Asset Management, Inc., a subsidiary of the Bank.
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