Head-To-Head Analysis: Private Bancorp of America (OTCMKTS:PBAM) versus Intercorp Financial Services (NYSE:IFS)

Intercorp Financial Services (NYSE:IFS) and Private Bancorp of America (OTCMKTS:PBAM) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Volatility and Risk

Intercorp Financial Services has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Private Bancorp of America has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Earnings and Valuation

This table compares Intercorp Financial Services and Private Bancorp of America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intercorp Financial Services	$6.54 billion	0.60	$346.47 million	$3.02	11.31
Private Bancorp of America	$161.24 million	1.97	$35.54 million	$6.16	8.93

Intercorp Financial Services has higher revenue and earnings than Private Bancorp of America. Private Bancorp of America is trading at a lower price-to-earnings ratio than Intercorp Financial Services, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

13.5% of Private Bancorp of America shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Intercorp Financial Services and Private Bancorp of America, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intercorp Financial Services	0	0	1	0	3.00
Private Bancorp of America	0	0	2	0	3.00

Intercorp Financial Services presently has a consensus target price of $30.00, suggesting a potential downside of 12.13%. Private Bancorp of America has a consensus target price of $65.50, suggesting a potential upside of 19.09%. Given Private Bancorp of America’s higher probable upside, analysts clearly believe Private Bancorp of America is more favorable than Intercorp Financial Services.

Profitability

This table compares Intercorp Financial Services and Private Bancorp of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intercorp Financial Services	21.03%	12.38%	1.38%
Private Bancorp of America	22.11%	17.55%	1.56%

Summary

Private Bancorp of America beats Intercorp Financial Services on 8 of the 12 factors compared between the two stocks.

About Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.

About Private Bancorp of America

Private Bancorp of America, Inc. operates as the bank holding company for CalPrivate Bank that provides banking products and services to individuals and businesses in California. The company offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts; unsecured lines of credit, personal credit lines, and term loans; additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services. It also provides treasury management, merchant card, bill pay, positive pay, e-statement, remote deposit capture, ACH origination, wire transfer, electronic payments and collections, electronic check acceptance, account reconciliation, cash vault, and gift and business credit cards, as well as funds management services. In addition, the company offers term credit facilities and loans, equipment and business expansion loans, working capital lines of credit, commercial real estate financing, construction financing, letters of credit, business start-up loans, loans for business acquisition and partner buyouts, owner-occupied commercial real estate loans, equipment, furniture and fixture, and other loans; and CDARS And ICS products. Further, it provides wealth management and legal services. The company has offices in La Jolla, San Diego, Coronado, Newport Beach, Beverly Hills, El Segundo, Temecula, Mission Valley, and Redlands. Private Bancorp of America, Inc. was founded in 2006 and is headquartered in La Jolla, California.