Critical Contrast: PrivateBancorp (NASDAQ:PVTB) and Its Peers

PrivateBancorp (NASDAQ: PVTB) is one of 201 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its rivals? We will compare PrivateBancorp to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Insider and Institutional Ownership

88.5% of PrivateBancorp shares are held by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are held by institutional investors. 3.9% of PrivateBancorp shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares PrivateBancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PrivateBancorp 29.22% 11.73% 1.15%
PrivateBancorp Competitors 20.38% 8.67% 0.92%

Valuation & Earnings

This table compares PrivateBancorp and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PrivateBancorp N/A N/A 23.01
PrivateBancorp Competitors $338.81 million $71.86 million 21.67

PrivateBancorp’s rivals have higher revenue and earnings than PrivateBancorp. PrivateBancorp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

PrivateBancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. PrivateBancorp pays out 1.5% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.4% of their earnings in the form of a dividend.

Volatility and Risk

PrivateBancorp has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, PrivateBancorp’s rivals have a beta of 0.75, suggesting that their average stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PrivateBancorp and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PrivateBancorp 0 3 0 0 2.00
PrivateBancorp Competitors 507 3087 2473 87 2.35

PrivateBancorp presently has a consensus price target of $57.00, indicating a potential downside of 6.51%. As a group, “Commercial Banks” companies have a potential upside of 2.65%. Given PrivateBancorp’s rivals stronger consensus rating and higher possible upside, analysts plainly believe PrivateBancorp has less favorable growth aspects than its rivals.

PrivateBancorp Company Profile

PrivateBancorp, Inc. is a bank holding company for The PrivateBank and Trust Company (the Bank). Through the Bank, the Company provides customized business and personal financial services to middle market companies, as well as business owners, executives, entrepreneurs and families in the markets and communities it serves. The Company operates through three operating segments: Banking, Asset Management and Holding Company activities. The Banking segment consists of commercial and personal banking services. The Company’s Asset Management segment includes certain activities of its PrivateWealth group, including investment management, personal trust and estate administration, custodial and escrow services, investment management services for 401(k) plans and brokerage services. The activities of the Holding Company Activities segment include the direct and indirect ownership of its banking subsidiary, the issuance of debt and intersegment eliminations.

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