First US Bancshares (NASDAQ:FUSB) & Pacific Premier Bancorp (NASDAQ:PPBI) Critical Analysis

First US Bancshares (NASDAQ:FUSB) and Pacific Premier Bancorp (NASDAQ:PPBI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Earnings & Valuation

This table compares First US Bancshares and Pacific Premier Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First US Bancshares	$56.19 million	1.29	$8.48 million	$1.40	9.04
Pacific Premier Bancorp	$714.07 million	3.75	$30.85 million	($0.15)	-184.99

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

Risk and Volatility

First US Bancshares has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First US Bancshares and Pacific Premier Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First US Bancshares	0	0	0	0	0.00
Pacific Premier Bancorp	0	3	3	0	2.50

Pacific Premier Bancorp has a consensus target price of $26.50, indicating a potential downside of 4.50%. Given Pacific Premier Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Pacific Premier Bancorp is more favorable than First US Bancshares.

Dividends

First US Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 4.8%. First US Bancshares pays out 14.3% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out -879.9% 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. Pacific Premier Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

18.7% of First US Bancshares shares are owned by institutional investors. Comparatively, 93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 11.2% of First US Bancshares shares are owned by insiders. Comparatively, 2.2% of Pacific Premier Bancorp shares are owned 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.

Profitability

This table compares First US Bancshares and Pacific Premier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First US Bancshares	14.25%	9.31%	0.81%
Pacific Premier Bancorp	N/A	5.94%	0.93%

Summary

Pacific Premier Bancorp beats First US Bancshares on 11 of the 16 factors compared between the two stocks.

About First US Bancshares

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

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.