Head to Head Analysis: Plumas Bancorp (NASDAQ:PLBC) versus City Bank (OTCMKTS:CTBK)

City Bank (OTCMKTS:CTBK) and Plumas Bancorp (NASDAQ:PLBC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for City Bank and Plumas Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Bank	0	0	0	0	0.00
Plumas Bancorp	0	0	3	0	3.00

Plumas Bancorp has a consensus price target of $55.50, suggesting a potential upside of 27.09%. Given Plumas Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Plumas Bancorp is more favorable than City Bank.

Earnings and Valuation

This table compares City Bank and Plumas Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Bank	N/A	N/A	N/A	N/A	N/A
Plumas Bancorp	$93.11 million	3.26	$28.62 million	$4.27	10.23

Plumas Bancorp has higher revenue and earnings than City Bank.

Insider and Institutional Ownership

41.7% of Plumas Bancorp shares are held by institutional investors. 37.5% of City Bank shares are held by insiders. Comparatively, 7.7% of Plumas Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares City Bank and Plumas Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Bank	N/A	N/A	N/A
Plumas Bancorp	25.80%	15.30%	1.73%

Summary

Plumas Bancorp beats City Bank on 8 of the 9 factors compared between the two stocks.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.