Head-To-Head Survey: PacWest Bancorp (PACW) & California First National Bancorp (CFNB)

PacWest Bancorp (NASDAQ:PACW) and California First National Bancorp (OTCMKTS:CFNB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Dividends

PacWest Bancorp pays an annual dividend of $2.40 per share and has a dividend yield of 6.1%. California First National Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 3.4%. PacWest Bancorp pays out 64.5% of its earnings in the form of a dividend. PacWest Bancorp has increased its dividend for 8 consecutive years. PacWest Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for PacWest Bancorp and California First National Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PacWest Bancorp 0 5 3 1 2.56
California First National Bancorp 0 0 0 0 N/A

PacWest Bancorp currently has a consensus target price of $49.00, suggesting a potential upside of 24.65%. Given PacWest Bancorp’s higher probable upside, research analysts clearly believe PacWest Bancorp is more favorable than California First National Bancorp.

Insider and Institutional Ownership

88.3% of PacWest Bancorp shares are held by institutional investors. 1.0% of PacWest Bancorp shares are held by company insiders. Comparatively, 78.5% of California First National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares PacWest Bancorp and California First National Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PacWest Bancorp $1.31 billion 3.65 $465.33 million $3.72 10.57
California First National Bancorp $36.69 million 4.09 $11.12 million N/A N/A

PacWest Bancorp has higher revenue and earnings than California First National Bancorp.

Volatility & Risk

PacWest Bancorp has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, California First National Bancorp has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Profitability

This table compares PacWest Bancorp and California First National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PacWest Bancorp 35.33% 9.64% 1.87%
California First National Bancorp N/A N/A N/A

Summary

PacWest Bancorp beats California First National Bancorp on 12 of the 15 factors compared between the two stocks.

PacWest Bancorp Company Profile

PacWest Bancorp operates as the holding company for Pacific Western Bank, a state chartered bank that provides commercial banking products and services. The company accepts demand, money market, and time deposits. It also provides real estate loans to professional developers and real estate investors for the acquisition, refinancing, and construction of commercial real estate properties; small business administration loans; asset-based loans for working capital needs; venture capital loans to support the start-up operations of entrepreneurial companies; and equipment-secured loans and leases. In addition, the company offers consumer loans comprising personal loans, auto loans, home equity lines of credit, revolving lines of credit, and other loans. Further, it provides international banking and multi-state deposit services; money market sweep products; investment advisory and asset management services; treasury and cash management services; telephone banking, and online and mobile banking services; and foreign exchange and ATM services. The company offers its products and services to small and mid-sized companies, entrepreneurial businesses and their venture capital, private equity investors, professionals, and other individuals. As of February 1, 2018, it had 76 full-service branches located throughout the state of California; and one branch in Durham, North Carolina. The company was formerly known as First Community Bancorp and changed its name to PacWest Bancorp in April 2008. PacWest Bancorp was founded in 1999 and is headquartered in Beverly Hills, California.

California First National Bancorp Company Profile

California First National Bancorp operates as the bank holding company for California First National Bank that provides banking services in the United States. The company accepts interest-bearing checking, money market, and savings accounts, as well as certificates of deposit and IRA deposit products. It also provides commercial loan products, including lines of credit, term loans, and commercial mortgages; and syndicated loans. In addition, the company, through its subsidiary, California First Leasing Corp., leases and finances capital assets used by businesses and organizations comprising computer systems and networks, automated warehouse distribution management systems, and manufacturing production systems; retail point-of-sale and inventory tracking systems; telecommunications systems, including wireless networks, voice over Internet protocol systems, and satellite tracking systems; and other equipment, as well as non-electronic properties, such as office equipment, mining equipment, machine tools, school buses, trucks, exercise equipment, and office and dormitory furniture. It serves corporations and middle-market companies, private and state-related educational institutions, municipalities, and other not-for-profit organizations and institutions. California First National Bancorp was founded in 1977 and is headquartered in Irvine, California.

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