Webster Financial (NYSE:WBS) versus Pacific Valley Bancorp (OTCMKTS:PVBK) Head to Head Review

Pacific Valley Bancorp (OTCMKTS:PVBK) and Webster Financial (NYSE:WBS) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares Pacific Valley Bancorp and Webster Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Valley Bancorp	$30.26 million	1.59	$4.42 million	$0.90	10.83
Webster Financial	$4.18 billion	2.41	$768.71 million	$4.37	13.45

Webster Financial has higher revenue and earnings than Pacific Valley Bancorp. Pacific Valley Bancorp is trading at a lower price-to-earnings ratio than Webster Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Pacific Valley Bancorp and Webster Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Valley Bancorp	0	0	0	0	0.00
Webster Financial	0	2	9	0	2.82

Webster Financial has a consensus target price of $62.08, suggesting a potential upside of 5.62%. Given Webster Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Webster Financial is more favorable than Pacific Valley Bancorp.

Risk & Volatility

Pacific Valley Bancorp has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Webster Financial has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Insider & Institutional Ownership

2.8% of Pacific Valley Bancorp shares are owned by institutional investors. Comparatively, 85.6% of Webster Financial shares are owned by institutional investors. 0.9% of Webster Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Pacific Valley Bancorp and Webster Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Valley Bancorp	14.62%	N/A	N/A
Webster Financial	18.39%	10.82%	1.21%

Summary

Webster Financial beats Pacific Valley Bancorp on 14 of the 14 factors compared between the two stocks.

About Pacific Valley Bancorp

Pacific Valley Bancorp operates as the bank holding company for Pacific Valley Bank that provides various banking products and services in the United States. The company offers personal and business banking, including checking accounts, savings and money market accounts, and certificates of deposit; and online solutions, such as online and mobile banking, bill pay, remote deposit capture, positive pay, e-statements, and order checks. It also provides commercial or agriculture lines of credit, commercial or agriculture terms loans, commercial constructions loans, agriculture production lending, and government guaranteed loan programs; and debit card, incoming wire instructions, ATM locator, fraud prevention, identity theft, and FDIC insurance estimator services. The company was founded in 2004 and is headquartered in Salinas, California.

About Webster Financial

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking. The Commercial Banking segment offers commercial real estate and equipment financing, business banking, asset-based lending, and commercial services; public sector finance; mortgage warehouse financing; sponsor and specialty financing services; credit, deposit, and cash flow management services; and wealth management solutions to business owners and operators, including trust, asset management, financial planning, insurance, retirement, and investment products, as well as treasury management services comprising derivative, treasury, accounts payable, accounts receivable, and trade products and services. This segment also provides commercial services, such as accounts receivable factoring and trade financing, payroll funding, and business process outsourcing. The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefit services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. The Consumer Banking segment provides consumer deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers; and small business banking products, such as credit, deposit, and cash flow management products to businesses and professional service firms. The company offers online and mobile banking services. Webster Financial Corporation was founded in 1935 and is headquartered in Stamford, Connecticut.