Head to Head Survey: Pacific Continental (PCBK) and Merchants Bancshares,Inc. (MBVT)

Pacific Continental (NASDAQ: PCBK) and Merchants Bancshares,Inc. (NASDAQ:MBVT) are both small-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Profitability

This table compares Pacific Continental and Merchants Bancshares,Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Continental 26.45% 10.15% 1.10%
Merchants Bancshares,Inc. 20.64% 9.19% 0.71%

Earnings and Valuation

This table compares Pacific Continental and Merchants Bancshares,Inc.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pacific Continental $97.76 6,521,685.76 $19.77 $1.13 24.78
Merchants Bancshares,Inc. N/A N/A N/A $2.17 22.95

Pacific Continental has higher revenue and earnings than Merchants Bancshares,Inc.. Merchants Bancshares,Inc. is trading at a lower price-to-earnings ratio than Pacific Continental, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Pacific Continental has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Merchants Bancshares,Inc. has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Pacific Continental and Merchants Bancshares,Inc., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Continental 0 3 1 0 2.25
Merchants Bancshares,Inc. 0 0 0 0 N/A

Pacific Continental presently has a consensus price target of $28.00, suggesting a potential upside of 0.00%. Given Pacific Continental’s higher probable upside, analysts clearly believe Pacific Continental is more favorable than Merchants Bancshares,Inc..

Dividends

Pacific Continental pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Merchants Bancshares,Inc. pays an annual dividend of $1.12 per share and has a dividend yield of 2.2%. Pacific Continental pays out 38.9% of its earnings in the form of a dividend. Merchants Bancshares,Inc. pays out 51.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

67.5% of Pacific Continental shares are owned by institutional investors. Comparatively, 38.6% of Merchants Bancshares,Inc. shares are owned by institutional investors. 4.8% of Pacific Continental shares are owned by insiders. Comparatively, 8.8% of Merchants Bancshares,Inc. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Pacific Continental beats Merchants Bancshares,Inc. on 8 of the 12 factors compared between the two stocks.

About Pacific Continental

Pacific Continental Corporation is a bank holding company. The Company’s principal business activities are conducted through its subsidiary, Pacific Continental Bank (the Bank), an Oregon state-chartered bank with deposits insured by the Federal Deposit Insurance Corporation. The Bank operates in three primary markets: Eugene, Oregon, Portland; Oregon/Southwest Washington, and Seattle, Washington. As of December 31, 2016, the Bank operated 15 full-service offices in Oregon and Washington and two loan production offices in Washington and Colorado. The Bank primarily operates in large commercial markets and provides banking and related services designed for community-based businesses, nonprofit organizations, professional service providers and banking services for business owners. It provides traditional commercial and consumer banking services, including cash management products for businesses, online banking, safe deposit services debit and automated teller machine cards and others.

About Merchants Bancshares,Inc.

Merchants Bancshares, Inc. is a bank holding company. The Company’s subsidiary, Merchants Bank (the Bank), is a commercial bank. The Bank offers a range of deposit, loan, cash management and trust services to meet the financial needs of individual consumers, businesses and municipalities. Merchants Bank’s trust division offers investment management, financial planning and trustee services. The Bank offers commercial, financial and agricultural loans, municipal loans, residential real estate loans, commercial real estate loans, construction real estate loans and consumer installment loans for various personal needs, including vehicle and boat financing. The Bank’s deposits include demand; savings and interest bearing checking and money market accounts, and time deposits.

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