Preferred Bank (PFBC) vs Westamerica Bancorporation (WABC)

Preferred Bank and Westamerica Bancorporation are both Banks Regional companies. Westamerica Bancorporation is the larger, with a market value of $1.4B against $1.2B — 1.1× the size. Preferred Bank trades at the lower P/E: 9.4× against 12.9×. Preferred Bank grew revenue faster over the last twelve months: 0.55% against −4.35%. Westamerica Bancorporation has the higher net margin (41.6% vs 26.2%) and the lower return on invested capital (15.4% vs 27.0%). Both pay a dividend; Westamerica Bancorporation yields more (3.18% vs 3.07%). Across the 18 metrics below, Preferred Bank leads on 12 and Westamerica Bancorporation on 6.

Valuation

Metric PFBC WABC Banks Regional median
P/E 9.44 12.88 12.02
P/S 2.44 5.19 2.36
P/B 1.55 1.75 1.23
Price to free cash flow 8.78 12.70 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.60% 7.76% 8.21%
Free cash flow yield 11.39% 7.87% 9.23%

Profitability

Metric PFBC WABC Banks Regional median
Gross margin 57.93% 94.84% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 26.20% 41.63% 18.82%
Free cash flow margin 0.00% 0.00% 17.97%
Return on equity 0.00% 12.86% 10.28%
Return on assets 1.75% 1.89% 1.13%
Return on invested capital 26.98% 15.35% 8.45%

Growth

Metric PFBC WABC Banks Regional median
Revenue growth (TTM) 0.55% (4.35%) 6.37%
EPS growth (last fiscal year) 7.99% (13.08%) 18.85%
Revenue growth, 5-year CAGR 18.09% 5.14% 12.65%
Net income growth, 5-year CAGR 14.04% 7.64% 9.81%

Health

Metric PFBC WABC Banks Regional median
Debt to equity 0.44 0.18 0.17
Current ratio 1.05 0.20 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric PFBC WABC Banks Regional median
Dividend yield 3.07% 3.18% 2.49%
Payout ratio 0.30 0.41 0.29

Size

Metric PFBC WABC Banks Regional median
Market cap 1.23b 1.38b 934.85m

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