Reviewing Pinnacle Bank (PBNK) and Its Competitors

Institutional and Insider Ownership

8.4% of Pinnacle Bank shares are owned by institutional investors. Comparatively, 54.3% of shares of all “BANKS – SOUTHWEST” companies are owned by institutional investors. 13.3% of shares of all “BANKS – SOUTHWEST” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pinnacle Bank and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bank	14.83%	7.81%	0.88%
Pinnacle Bank Competitors	17.79%	10.48%	1.21%

Risk and Volatility

Pinnacle Bank has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Pinnacle Bank’s competitors have a beta of 0.52, indicating that their average stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Pinnacle Bank and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pinnacle Bank	$53.91 million	$8.85 million	11.60
Pinnacle Bank Competitors	$764.14 million	$149.21 million	13.45

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

Summary

Pinnacle Bank competitors beat Pinnacle Bank on 9 of the 9 factors compared.

About Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.