PacWest Bancorp (NASDAQ:PACW) and Amerant Bancorp (NASDAQ:AMTB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Valuation and Earnings

This table compares PacWest Bancorp and Amerant Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PacWest Bancorp $1.36 billion 2.67 $468.64 million $3.90 7.99
Amerant Bancorp $370.08 million 1.73 $51.33 million $1.24 12.27

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

Risk & Volatility

PacWest Bancorp has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Amerant Bancorp has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

79.9% of PacWest Bancorp shares are owned by institutional investors. Comparatively, 18.6% of Amerant Bancorp shares are owned by institutional investors. 1.4% of PacWest Bancorp shares are owned by company insiders. Comparatively, 16.5% of Amerant Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
PacWest Bancorp -98.27% 5.96% 0.88%
Amerant Bancorp 0.94% 0.52% 0.05%

Analyst Recommendations

This is a summary of recent recommendations for PacWest Bancorp and Amerant Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PacWest Bancorp 0 3 3 0 2.50
Amerant Bancorp 0 2 0 0 2.00

PacWest Bancorp presently has a consensus price target of $25.83, indicating a potential downside of 17.07%. Amerant Bancorp has a consensus price target of $12.50, indicating a potential downside of 17.82%. Given PacWest Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe PacWest Bancorp is more favorable than Amerant Bancorp.

Summary

PacWest Bancorp beats Amerant Bancorp on 11 of the 14 factors compared between the two stocks.

About PacWest Bancorp

PacWest Bancorp operates as the holding company for Pacific Western 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, renovation, and construction of commercial real estate properties; small business administration loans; asset-based loans for working capital needs; venture capital loans to support the 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, remote deposit, and online and mobile banking services; and ATM services. The company offers its products and services to small and mid-sized companies, venture-backed businesses, venture capital and private equity investors, professionals, and other individuals. As of October 14, 2020, it had 72 full-service branches located in the state of California, one branch in Durham, North Carolina, and one branch in Denver, Colorado; and loan production offices. 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.

About Amerant Bancorp

Amerant Bancorp Inc. operates as the bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and internationally. It offers a range of checking and savings accounts, certificates of deposit, and money market accounts. The company also provides variable and fixed rate commercial real estate loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals primarily secured by personal residence; working capital loans, asset-based lending, participations in shared national credits, purchased receivables, and small business administration loans; loans to financial institutions and acceptances; and consumer loans and overdrafts. In addition, it offers trust and estate planning products and services, brokerage and investment advisory services in global capital markets, and wealth management and fiduciary services. Further, the company provides debit and credit cards; remote deposit capture, online and mobile banking, night depository, direct deposit, and treasury management services; and cashier's checks, safe deposit boxes, and letters of credit, as well as automated teller machines. As of April 10, 2020, it operated 27 banking centers comprising 19 in South Florida and 8 in Houston, Texas, as well as loan production offices in Dallas, Texas, and New York. The company was formerly known as Mercantil Bank Holding Corporation and changed its name to Amerant Bancorp Inc. in June 2019. Amerant Bancorp Inc. was founded in 1979 and is headquartered in Coral Gables, Florida.

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