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

Analyst Recommendations

This is a summary of current recommendations for Allegiance Bancshares and Premier Financial Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegiance Bancshares 0 1 0 0 2.00
Premier Financial Bancorp 0 0 0 0 N/A

Allegiance Bancshares presently has a consensus price target of $44.00, indicating a potential upside of 1.03%. Given Allegiance Bancshares’ higher possible upside, research analysts plainly believe Allegiance Bancshares is more favorable than Premier Financial Bancorp.

Institutional and Insider Ownership

46.0% of Allegiance Bancshares shares are owned by institutional investors. Comparatively, 3.9% of Premier Financial Bancorp shares are owned by institutional investors. 12.7% of Allegiance Bancshares shares are owned by insiders. Comparatively, 12.9% of Premier Financial Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Allegiance Bancshares and Premier Financial Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegiance Bancshares $125.30 million 4.65 $17.63 million $1.58 27.56
Premier Financial Bancorp $70.64 million 29.80 $14.81 million N/A N/A

Allegiance Bancshares has higher revenue and earnings than Premier Financial Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Allegiance Bancshares 15.77% 8.66% 0.93%
Premier Financial Bancorp 23.63% 9.18% 1.12%

Dividends

Premier Financial Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. Allegiance Bancshares does not pay a dividend. Premier Financial Bancorp has raised its dividend for 2 consecutive years.

Volatility & Risk

Allegiance Bancshares has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Premier Financial Bancorp has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Summary

Premier Financial Bancorp beats Allegiance Bancshares on 7 of the 13 factors compared between the two stocks.

About Allegiance Bancshares

Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, savings accounts, and other time deposits comprising money market accounts and certificates of deposit. The company also grants various loan products, such as commercial and industrial loans; mortgage warehouse loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machines, drive-through services, and 24-hour depository facilities; mobile banking; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of January 25, 2018, it operated 16 full-service banking locations and a loan production office in the Houston metropolitan area. The company was founded in 2007 and is headquartered in Houston, Texas.

About Premier Financial Bancorp

Premier Financial Bancorp, Inc., a multi-bank holding company, provides community banking services to individuals and small-to-medium sized businesses. The company accepts various deposit products, including checking, NOW, savings, money market, club, individual retirement, and overdraft protection accounts, as well as certificates of deposit. Its loan products include loans for purchasing personal residences or loans for commercial or consumer purposes secured by residential mortgages; financing for automobile; personal loans, such as unsecured lines of credit; commercial loans that are secured by business assets consisting of real estate, equipment, inventory, and accounts receivable; real estate development loans; commercial real estate loans; and agricultural loans. The company also provides depository and funds transfer services; collections; safe deposit boxes; cash management services; and bill payment, remote deposits, and telephone banking services. As of March 5, 2018, it operated 10 banking offices in Kentucky, 3 banking offices in Ohio, 24 banking offices in West Virginia, 4 banking offices in Washington DC, 1 banking offices in Maryland, and 3 banking offices in Virginia. Premier Financial Bancorp, Inc. was founded in 1991 and is headquartered in Huntington, West Virginia.

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