Albina Community Bancorp (OTCMKTS:ACBCQ) & Prosperity Bancshares (NYSE:PB) Critical Review

Prosperity Bancshares (NYSE:PB) and Albina Community Bancorp (OTCMKTS:ACBCQ) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Prosperity Bancshares and Albina Community Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosperity Bancshares	0	3	10	0	2.77
Albina Community Bancorp	0	0	0	0	N/A

Prosperity Bancshares presently has a consensus price target of $77.04, indicating a potential upside of 7.88%. Given Prosperity Bancshares’ higher possible upside, analysts clearly believe Prosperity Bancshares is more favorable than Albina Community Bancorp.

Valuation & Earnings

This table compares Prosperity Bancshares and Albina Community Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosperity Bancshares	$1.60 billion	4.26	$419.32 million	$4.34	16.45
Albina Community Bancorp	N/A	N/A	N/A	N/A	N/A

Prosperity Bancshares has higher revenue and earnings than Albina Community Bancorp.

Insider and Institutional Ownership

80.7% of Prosperity Bancshares shares are owned by institutional investors. 4.3% of Prosperity Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Prosperity Bancshares and Albina Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prosperity Bancshares	25.10%	6.32%	1.15%
Albina Community Bancorp	N/A	N/A	N/A

Risk and Volatility

Prosperity Bancshares has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Albina Community Bancorp has a beta of 3.19, indicating that its share price is 219% more volatile than the S&P 500.

Summary

Prosperity Bancshares beats Albina Community Bancorp on 8 of the 9 factors compared between the two stocks.

About Prosperity Bancshares

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.

About Albina Community Bancorp

Albina Community Bancorp operates as a bank holding company for Albina Community Bank that provides various banking products and services in Portland. The company offers checking, savings, and money market deposit accounts, as well as certificates of deposits and individual retirement accounts. It also provides personal loans, home equity lines of credit, operating lines of credit, term loans, and commercial real estate loans; government guaranteed lending and accounts receivable financing; and credit cards. In addition, the company offers online banking and cash management, merchant, wire transfer, online bill payment, business payroll, deposit courier, night depository, automated customer, free cash withdrawals, and workplace banking services, as well as overdraft protection products. Albina Community Bancorp was incorporated in 1993 and is based in Portland, Oregon. On September 17, 2014, Albina Community Bancorp filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Oregon.