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PacWest Bancorp’s Performance Compared to Its Peers

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PacWest Bancorp and its peers

An analysis of PacWest Bancorp and its peers follows:

  • The EPS (earnings per share) of PacWest Bancorp (PACW), U.S. Bancorp (USB), First Republic Bank (FRC), and Associated Banc-Corp (ASB) are $0.68, $0.81, $0.82, and $0.31, respectively, in 3Q15.
  • The forward PE (price-to-earnings) ratios of PacWest, U.S. Bancorp, First Republic Bank, City National (CYN), and Associated Banc-Corp are 14.41x, 11.84x, 17.03x, 17.76x, and 14.03x, respectively.

  • The PBV (price-to-book value) ratios of PacWest, U.S. Bancorp, First Republic Bank, City National, and Associated Banc-Corp are 1.25x, 1.83x, 2.08x, 1.78x, and 0.99x, respectively.

As a result, the peers are way ahead of PacWest Bancorp based on the EPS and PBV ratio.

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ETFs that invest in PacWest Bancorp

The PowerShares KBW Regional Banking Portfolio (KBWR) invests 3.5% of its holdings in PacWest. KBWR tracks an equal-weighted index focused exclusively on US regional banking firms.

The First Trust NASDAQ ABA Community Bank ETF (QABA) invests 2.5% of its holdings in PacWest. QABA tracks an index of NASDAQ-listed banks and thrifts, excluding the 50 largest.

The KBE Bank Fund (KBE) invests 1.6% of its holdings in PacWest. KBE tracks an equal-weighted index of US banking firms.

Comparing PacWest Bancorp and its ETFs

An analysis of PacWest Bancorp and its ETFs follows:

  • The YTD (year-to-date) price movements of PacWest, KBWR, KBE, and QABA are -1.2%, 3.3%, 2.4%, and 4%, respectively.
  • The PE ratios of PacWest, KBWR, KBE, and QABA are 15.36x, 18.85x, 14.01x, and 17.0x, respectively.
  • The PBV ratios of PacWest, KBWR, KBE, and QABA are 1.25x, 1.39x, 1.21x, and 1.39x, respectively.

The ETFs outperformed PacWest Bancorp based on the price movement, PE ratio, and PBV ratio.

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