Head to Head Survey: RBB Bancorp (NASDAQ:RBB) vs. Western Alliance Bancorporation (NYSE:WAL)

Western Alliance Bancorporation (NYSE:WAL) and RBB Bancorp (NASDAQ:RBB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Dividends

Western Alliance Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.1%. RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Western Alliance Bancorporation pays out 19.6% of its earnings in the form of a dividend. RBB Bancorp pays out 27.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Western Alliance Bancorporation has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Western Alliance Bancorporation and RBB Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$5.37 billion	1.65	$969.00 million	$8.59	9.48
RBB Bancorp	$238.00 million	1.93	$31.95 million	$2.36	11.50

Western Alliance Bancorporation has higher revenue and earnings than RBB Bancorp. Western Alliance Bancorporation is trading at a lower price-to-earnings ratio than RBB Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Western Alliance Bancorporation has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares Western Alliance Bancorporation and RBB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	17.03%	13.58%	1.09%
RBB Bancorp	16.76%	7.85%	0.98%

Analyst Ratings

This is a summary of current ratings and target prices for Western Alliance Bancorporation and RBB Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	0	4	10	0	2.71
RBB Bancorp	0	2	2	1	2.80

Western Alliance Bancorporation presently has a consensus price target of $94.00, indicating a potential upside of 15.47%. RBB Bancorp has a consensus price target of $24.33, indicating a potential downside of 10.31%. Given Western Alliance Bancorporation’s higher probable upside, equities analysts clearly believe Western Alliance Bancorporation is more favorable than RBB Bancorp.

Insider & Institutional Ownership

79.2% of Western Alliance Bancorporation shares are owned by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are owned by institutional investors. 2.7% of Western Alliance Bancorporation shares are owned by company insiders. Comparatively, 6.8% of RBB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Western Alliance Bancorporation beats RBB Bancorp on 12 of the 18 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.