F.N.B. (NYSE:FNB) and Pacific Mercantile Bancorp (NASDAQ:PMBC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for F.N.B. and Pacific Mercantile Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F.N.B. 0 2 5 0 2.71
Pacific Mercantile Bancorp 0 0 2 0 3.00

F.N.B. presently has a consensus target price of $16.60, suggesting a potential upside of 47.56%. Pacific Mercantile Bancorp has a consensus target price of $11.00, suggesting a potential upside of 49.25%. Given Pacific Mercantile Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Pacific Mercantile Bancorp is more favorable than F.N.B..

Profitability

This table compares F.N.B. and Pacific Mercantile Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F.N.B. 20.94% 8.03% 1.09%
Pacific Mercantile Bancorp 39.50% 20.75% 1.92%

Institutional & Insider Ownership

79.9% of F.N.B. shares are held by institutional investors. Comparatively, 67.9% of Pacific Mercantile Bancorp shares are held by institutional investors. 0.6% of F.N.B. shares are held by insiders. Comparatively, 3.6% of Pacific Mercantile Bancorp shares are held by 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.

Dividends

F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 4.3%. Pacific Mercantile Bancorp does not pay a dividend. F.N.B. pays out 51.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares F.N.B. and Pacific Mercantile Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
F.N.B. $1.23 billion 2.96 $199.20 million $0.93 12.10
Pacific Mercantile Bancorp $55.95 million 2.89 $10.44 million N/A N/A

F.N.B. has higher revenue and earnings than Pacific Mercantile Bancorp.

Volatility & Risk

F.N.B. has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Pacific Mercantile Bancorp has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Summary

F.N.B. beats Pacific Mercantile Bancorp on 8 of the 15 factors compared between the two stocks.

F.N.B. Company Profile

F.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses. The company operates through four segments: Community Banking, Wealth Management, Insurance, and Consumer Finance. It offers commercial banking solutions, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. The company also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services; and wealth management services comprising asset management, private banking, and insurance services. As of December 31, 2017, it operated 417 community banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, and South Carolina; and 77 consumer finance offices in Pennsylvania, Ohio, Tennessee, and Kentucky. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

Pacific Mercantile Bancorp Company Profile

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 5, 2018, it operated seven offices located in Orange, Los Angeles, San Diego, and San Bernardino counties in Southern California. The company was founded in 1998 and is based in Costa Mesa, California.

Receive News & Ratings for F.N.B. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for F.N.B. and related companies with MarketBeat.com's FREE daily email newsletter.