American Business Bank (OTCMKTS:AMBZ) & Pinnacle Bank (OTCMKTS:PBNK) Critical Analysis

Risk and Volatility

American Business Bank has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Pinnacle Bank has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Valuation & Earnings

This table compares American Business Bank and Pinnacle Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Business Bank	$183.26 million	2.35	$43.28 million	$5.18	9.27
Pinnacle Bank	$53.91 million	2.24	$8.85 million	$1.78	11.43

American Business Bank has higher revenue and earnings than Pinnacle Bank. American Business Bank is trading at a lower price-to-earnings ratio than Pinnacle Bank, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

9.9% of American Business Bank shares are held by institutional investors. Comparatively, 8.4% of Pinnacle Bank shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares American Business Bank and Pinnacle Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Business Bank	25.23%	N/A	N/A
Pinnacle Bank	14.83%	7.81%	0.88%

Summary

American Business Bank beats Pinnacle Bank on 7 of the 10 factors compared between the two stocks.

About American Business Bank

American Business Bank, a California-chartered bank, provides banking products and services to small and medium-sized firms, non-profits, business executives, and professionals in Southern California. The company offers credit and depository; treasury management; asset-based lending; SBA lending; international banking comprising money transfers, import and export commercial letters of credit, standby letters of credit, documentary and clean collections, and foreign currency exchange services; and consulting and referral services. It operates regional loan production offices located in North Orange County, Orange County, South Bay, San Fernando Valley, Riverside County, Inland Empire, and Long Beach. American Business Bank was incorporated in 1998 and is headquartered in Los Angeles, California.

About Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.