Head-To-Head Analysis: International Bancshares (NASDAQ:IBOC) vs. Pacific Premier Bancorp (NASDAQ:PPBI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Bancshares	39.64%	16.66%	2.66%
Pacific Premier Bancorp	N/A	6.34%	0.96%

Dividends

International Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.1%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.4%. International Bancshares pays out 20.2% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out 1,015.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Bancshares has increased its dividend for 15 consecutive years.

Institutional & Insider Ownership

65.9% of International Bancshares shares are owned by institutional investors. Comparatively, 93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 13.9% of International 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

International Bancshares has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Valuation and Earnings

This table compares International Bancshares and Pacific Premier Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$837.34 million	4.58	$411.77 million	$6.55	9.42
Pacific Premier Bancorp	$356.77 million	6.61	$30.85 million	$0.13	188.08

International Bancshares has higher revenue and earnings than Pacific Premier Bancorp. International Bancshares 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.

Analyst Ratings

This is a breakdown of recent ratings for International Bancshares and Pacific Premier Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	0	0	N/A
Pacific Premier Bancorp	0	3	3	0	2.50

Pacific Premier Bancorp has a consensus price target of $26.50, indicating a potential upside of 8.38%. Given Pacific Premier Bancorp’s higher probable upside, analysts plainly believe Pacific Premier Bancorp is more favorable than International Bancshares.

Summary

International Bancshares beats Pacific Premier Bancorp on 9 of the 16 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

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.