Financial Survey: PacWest Bancorp (PACW) & The Competition

PacWest Bancorp (NASDAQ: PACW) is one of 310 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare PacWest Bancorp to similar businesses based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares PacWest Bancorp and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PacWest Bancorp $1.13 billion $352.16 million 17.91
PacWest Bancorp Competitors $5.55 billion $833.70 million 384.73

PacWest Bancorp’s peers have higher revenue and earnings than PacWest Bancorp. PacWest Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

PacWest Bancorp has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, PacWest Bancorp’s peers have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Institutional & Insider Ownership

82.4% of PacWest Bancorp shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 1.0% of PacWest Bancorp shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares PacWest Bancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PacWest Bancorp 30.80% 7.87% 1.62%
PacWest Bancorp Competitors 18.54% 8.28% 0.93%

Analyst Ratings

This is a summary of recent recommendations and price targets for PacWest Bancorp and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PacWest Bancorp 0 6 5 1 2.58
PacWest Bancorp Competitors 2414 8731 8712 369 2.35

PacWest Bancorp presently has a consensus target price of $53.64, indicating a potential upside of 1.18%. As a group, “Banks” companies have a potential downside of 9.46%. Given PacWest Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe PacWest Bancorp is more favorable than its peers.

Dividends

PacWest Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 3.8%. PacWest Bancorp pays out 67.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.1% of their earnings in the form of a dividend.

Summary

PacWest Bancorp beats its peers on 8 of the 15 factors compared.

About PacWest Bancorp

PacWest Bancorp is a bank holding company for Pacific Western Bank (the Bank). The Company is focused on relationship-based business banking to small, middle-market and venture-backed businesses. As of October 23, 2017, the Bank offered a range of loan and deposit products and services through 83 branches located throughout the state of California, one branch located in Durham, North Carolina, and several loan production offices located in cities across the country. The Company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. It offers products and services through its CapitalSource and Square 1 Bank divisions. In addition, the Company provides investment advisory and asset management services to select clients through Square 1 Asset Management, Inc., a subsidiary of the Bank.

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