Pacific Alliance Bank (OTCMKTS:PFBN) vs. Red River Bancshares (NASDAQ:RRBI) Head to Head Comparison

Pacific Alliance Bank (OTCMKTS:PFBN) and Red River Bancshares (NASDAQ:RRBI) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. Red River Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 0.7%. Red River Bancshares pays out 9.0% of its earnings in the form of a dividend. Red River Bancshares has increased its dividend for 3 consecutive years.

Profitability

This table compares Pacific Alliance Bank and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Alliance Bank	N/A	N/A	N/A
Red River Bancshares	22.64%	11.34%	1.17%

Valuation and Earnings

This table compares Pacific Alliance Bank and Red River Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Alliance Bank	$23.57 million	1.18	$1.43 million	N/A	N/A
Red River Bancshares	$112.33 million	3.88	$34.24 million	$5.32	12.06

Red River Bancshares has higher revenue and earnings than Pacific Alliance Bank.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pacific Alliance Bank and Red River Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Alliance Bank	0	0	0	0	0.00
Red River Bancshares	0	0	1	0	3.00

Red River Bancshares has a consensus price target of $62.00, indicating a potential downside of 3.33%. Given Red River Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Red River Bancshares is more favorable than Pacific Alliance Bank.

Risk and Volatility

Pacific Alliance Bank has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Insider & Institutional Ownership

27.5% of Red River Bancshares shares are owned by institutional investors. 15.9% of Red River Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Red River Bancshares beats Pacific Alliance Bank on 13 of the 15 factors compared between the two stocks.

About Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.