Comparing Red River Bancshares (NASDAQ:RRBI) and Pacific Premier Bancorp (NASDAQ:PPBI)

Red River Bancshares (NASDAQ:RRBI) and Pacific Premier Bancorp (NASDAQ:PPBI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

27.5% of Red River Bancshares shares are owned by institutional investors. Comparatively, 93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 16.5% of Red River Bancshares shares are owned by company insiders. Comparatively, 2.2% of Pacific Premier Bancorp shares are owned by company 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.

Dividends

Red River Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.9%. Red River Bancshares pays out 9.7% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Red River Bancshares and Pacific Premier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	21.71%	11.04%	1.11%
Pacific Premier Bancorp	17.54%	5.43%	0.87%

Volatility and Risk

Red River Bancshares has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Red River Bancshares and Pacific Premier Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	0	0	0.00
Pacific Premier Bancorp	0	3	3	0	2.50

Pacific Premier Bancorp has a consensus price target of $27.00, indicating a potential upside of 21.24%. Given Pacific Premier Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Pacific Premier Bancorp is more favorable than Red River Bancshares.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$108.84 million	3.36	$34.24 million	$4.96	10.88
Pacific Premier Bancorp	$567.77 million	3.78	$158.80 million	$1.64	13.58

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

Summary

Pacific Premier Bancorp beats Red River Bancshares on 10 of the 16 factors compared between the two stocks.

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.

About Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.