Financial Comparison: Mission Valley Bancorp (OTCMKTS:MVLY) and Private Bancorp of America (OTCMKTS:PBAM)

Private Bancorp of America (OTCMKTS:PBAM) and Mission Valley Bancorp (OTCMKTS:MVLY) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Valuation & Earnings

This table compares Private Bancorp of America and Mission Valley Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Private Bancorp of America	$161.24 million	2.04	$35.82 million	$7.04	8.17
Mission Valley Bancorp	N/A	N/A	$6.20 million	$1.80	10.24

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

Risk & Volatility

Private Bancorp of America has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Mission Valley Bancorp has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Private Bancorp of America and Mission Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Private Bancorp of America	24.04%	17.10%	1.66%
Mission Valley Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Private Bancorp of America and Mission Valley Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Private Bancorp of America	0	1	1	1	3.00
Mission Valley Bancorp	0	0	0	0	0.00

Private Bancorp of America currently has a consensus price target of $74.00, indicating a potential upside of 28.70%. Given Private Bancorp of America’s stronger consensus rating and higher probable upside, research analysts clearly believe Private Bancorp of America is more favorable than Mission Valley Bancorp.

Insider & Institutional Ownership

13.5% of Private Bancorp of America shares are owned by institutional investors. Comparatively, 5.7% of Mission Valley Bancorp shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Private Bancorp of America beats Mission Valley Bancorp on 11 of the 13 factors compared between the two stocks.

About Private Bancorp of America

Private Bancorp of America, Inc. operates as the bank holding company for CalPrivate Bank that provides banking products and services to individuals and businesses in California. The company offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts; unsecured lines of credit, personal credit lines, and term loans; additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services. It also provides treasury management, merchant card, bill pay, positive pay, e-statement, remote deposit capture, ACH origination, wire transfer, electronic payments and collections, electronic check acceptance, account reconciliation, cash vault, and gift and business credit cards, as well as funds management services. In addition, the company offers term credit facilities and loans, equipment and business expansion loans, working capital lines of credit, commercial real estate financing, construction financing, letters of credit, business start-up loans, loans for business acquisition and partner buyouts, owner-occupied commercial real estate loans, equipment, furniture and fixture, and other loans; and CDARS And ICS products. Further, it provides wealth management and legal services. The company has offices in La Jolla, San Diego, Coronado, Newport Beach, Beverly Hills, El Segundo, Temecula, Mission Valley, and Redlands. Private Bancorp of America, Inc. was founded in 2006 and is headquartered in La Jolla, California.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, savings, and time deposits; and certificates of deposit. It also offers accounts receivable loans, advanced restaurant financing loans, commercial loans, real estate loans, small business administration loans, and term loans; consumer loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services to other financial institutions. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.