Head-to-head contrast: Amerant Bancorp (NASDAQ: AMTB) and Professional (NASDAQ: PFHD)


Professional (NASDAQ: PFHDGet a rating) and Amerant Bancorp (NASDAQ: AMTBGet a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on strength of institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Notes

This is a summary of recent Professional and Amerant Bancorp ratings, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Professional 0 1 1 0 2.50
Amerant Bancorp 0 0 3 0 3.00

Professional currently has a consensus target price of $23.00, suggesting a potential upside of 19.17%. Amerant Bancorp has a consensus target price of $33.67, suggesting a potential upside of 20.97%. Given Amerant Bancorp’s stronger consensus rating and higher possible upside, analysts clearly think Amerant Bancorp is more favorable than Professional.

Profitability

This table compares the net margins, return on equity and return on assets of Professional and Amerant Bancorp.

Net margins Return on equity return on assets
Professional 21.78% 9.45% 0.80%
Amerant Bancorp 30.67% 9.83% 1.03%

Volatility and risk

Professional has a beta of 0.01, which means its stock price is 99% less volatile than the S&P 500. Comparatively, Amerant Bancorp has a beta of 1.15, which means its stock price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

59.8% of Professional shares are held by institutional investors. By comparison, 34.6% of Amerant Bancorp’s shares are held by institutional investors. 8.6% of Professional shares are held by insiders of the company. By comparison, 17.2% of Amerant Bancorp’s stock is held by company insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Professional and Amerant Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Professional $85.81 million 3.09 $21.36 million $1.36 14.19
Amerant Bancorp $368.46 million 2.58 $112.92 million $3.09 9.01

Amerant Bancorp has higher revenue and profit than Professional. Amerant Bancorp trades at a lower price-to-earnings ratio than Professional, indicating that it is currently the more affordable of the two stocks.

Summary

Amerant Bancorp beats Professional on 11 out of 14 factors compared between the two stocks.

Professional Company Profile (Get a rating)

Professional Holding Corp. primarily operates through its subsidiary, Professional Bank, provides banking products and services to small and medium-sized businesses, other professionals and entrepreneurs. Its deposit products include checking, NOW, savings and money market accounts, as well as IRAs and certificates of deposit. The Company’s lending products include commercial loans, residential mortgages, home equity lines of credit, installment loans and consumer lines of credit. It also offers online/digital and mobile banking, as well as cash management and cash management services. The company operates through a network of eleven locations in the Miami, Broward and Palm Beach county areas, as well as a digital innovation center located in Cleveland, Ohio and a loan production office in St. Pete, Florida. , Jacksonville, and Bedford, New Hampshire. Professional Holding Corp. was founded in 2008 and is headquartered in Coral Gables, Florida.

Amerant Bancorp Company Profile (Get a rating)

Amerant Bancorp Inc. operates as a bank holding company for Amerant Bank, NA which provides personal and business banking products and services in the United States and abroad. The company offers checking, savings and money market accounts; and certificates of deposit. It also offers variable and fixed rate commercial real estate loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals mainly secured by personal residence; working capital loans, asset-based loans, national credit share participations, purchased receivables and small business administration loans; loans to financial institutions and acceptances; and consumer loans and overdrafts, such as auto, personal, or secured by cash or securities and revolving credit card contracts. In addition, the company offers trust and estate planning products and services to high net worth clients, brokerage and investment advisory services in global capital markets, as well as wealth management and trustee services. Additionally, it provides debit and credit cards, overnight depositories, direct deposits, cashiers checks, safe deposit boxes, letters of credit and cash management services including wire transfers, remote deposits and automated clearing house services; derivative instruments; and online and mobile banking, account balances, statements and other documents, online transfers and bill payment, and electronic delivery of customer statement services, as well as automated banking machines and banking services via mobile devices, phone and mail. As of December 31, 2021, the company operated 24 banking centers including 17 in Florida and 7 in Texas. It also operates loan origination offices in Tampa, Florida. The company was formerly known as Mercantil Bank Holding Corporation and changed its name to Amerant Bancorp Inc. in June 2019. Amerant Bancorp Inc. was founded in 1979 and is headquartered in Coral Gables, Florida.



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