Pacific Mercantile Bancorp (NASDAQ: PMBC) is one of 143 publicly-traded companies in the “National commercial banks” industry, but how does it contrast to its rivals? We will compare Pacific Mercantile Bancorp to related companies based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, dividends, earnings and risk.

Volatility and Risk

Pacific Mercantile Bancorp has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Pacific Mercantile Bancorp’s rivals have a beta of 1.08, suggesting that their average stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pacific Mercantile Bancorp and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pacific Mercantile Bancorp $71.26 million $5.68 million 13.50
Pacific Mercantile Bancorp Competitors $7.81 billion $1.71 billion 7.42

Pacific Mercantile Bancorp’s rivals have higher revenue and earnings than Pacific Mercantile Bancorp. Pacific Mercantile Bancorp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pacific Mercantile Bancorp and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Mercantile Bancorp 0 0 0 0 N/A
Pacific Mercantile Bancorp Competitors 2458 7298 5914 297 2.25

As a group, “National commercial banks” companies have a potential upside of 54.40%. Given Pacific Mercantile Bancorp’s rivals higher possible upside, analysts plainly believe Pacific Mercantile Bancorp has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

72.3% of Pacific Mercantile Bancorp shares are held by institutional investors. Comparatively, 51.9% of shares of all “National commercial banks” companies are held by institutional investors. 12.3% of Pacific Mercantile Bancorp shares are held by insiders. Comparatively, 9.5% of shares of all “National commercial banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pacific Mercantile Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Mercantile Bancorp 3.51% 1.65% 0.17%
Pacific Mercantile Bancorp Competitors 16.13% 8.13% 0.43%

Summary

Pacific Mercantile Bancorp rivals beat Pacific Mercantile Bancorp on 7 of the 10 factors compared.

About Pacific Mercantile Bancorp

Pacific Mercantile Bancorp operates as the holding company for Pacific Mercantile Bank that provides a range of commercial banking products and services to small and medium-size businesses, professional firms, and individuals in Southern California, the United States. The company's deposit products include checking accounts, interest-bearing term deposit accounts, savings and money market deposits, and time deposits. It also offers various loan products, such as commercial loans and credit lines, accounts receivable and inventory financing, small business administration guaranteed business loans, owner-occupied commercial real estate loans, working capital lines of credit and asset based lending, growth capital loans, equipment financing, letters of credit, and corporate credit cards. In addition, the company provides cash and treasury management solutions, automated clearinghouse payment and wire solutions, fraud protection services, remote deposit capture services, courier services, and online banking services; and letters of credit and import/export financing services. As of March 6, 2019, it operated seven locations in Orange, Los Angeles, San Diego, and San Bernardino counties, Southern California. The company was founded in 1998 and is based in Costa Mesa, California.

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