Pacific Premier Bancorp (NASDAQ:PPBI) vs. Eagle Bancorp Montana (NASDAQ:EBMT) Critical Comparison

Pacific Premier Bancorp (NASDAQ:PPBI) and Eagle Bancorp Montana (NASDAQ:EBMT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares Pacific Premier Bancorp and Eagle Bancorp Montana’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Premier Bancorp	$714.07 million	3.05	$30.85 million	$0.30	75.80
Eagle Bancorp Montana	$114.34 million	0.90	$10.06 million	$1.30	9.89

Pacific Premier Bancorp has higher revenue and earnings than Eagle Bancorp Montana. Eagle Bancorp Montana is trading at a lower price-to-earnings ratio than Pacific Premier Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pacific Premier Bancorp and Eagle Bancorp Montana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Premier Bancorp	24.75%	7.50%	1.05%
Eagle Bancorp Montana	8.80%	6.17%	0.49%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pacific Premier Bancorp and Eagle Bancorp Montana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Premier Bancorp	0	3	2	0	2.40
Eagle Bancorp Montana	0	1	0	0	2.00

Pacific Premier Bancorp presently has a consensus target price of $28.60, suggesting a potential upside of 25.77%. Eagle Bancorp Montana has a consensus target price of $14.00, suggesting a potential upside of 8.86%. Given Pacific Premier Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Pacific Premier Bancorp is more favorable than Eagle Bancorp Montana.

Volatility and Risk

Pacific Premier Bancorp has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

93.1% of Pacific Premier Bancorp shares are held by institutional investors. Comparatively, 35.7% of Eagle Bancorp Montana shares are held by institutional investors. 2.2% of Pacific Premier Bancorp shares are held by insiders. Comparatively, 6.7% of Eagle Bancorp Montana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.8%. Eagle Bancorp Montana pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Pacific Premier Bancorp pays out 440.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eagle Bancorp Montana pays out 43.1% of its earnings in the form of a dividend. Eagle Bancorp Montana has increased its dividend for 11 consecutive years.

Summary

Pacific Premier Bancorp beats Eagle Bancorp Montana on 13 of the 17 factors compared between the two stocks.

About Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.