WallStSmart

Preferred Bank (PFBC)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 9271% more annual revenue ($26.35B vs $281.24M). PFBC leads profitability with a 47.5% profit margin vs 28.7%. PFBC appears more attractively valued with a PEG of 0.94. PFBC earns a higher WallStSmart Score of 76/100 (B+).

PFBC

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 10.0Quality: 5.8
Piotroski: 4/9

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PFBCUndervalued (+81.0%)

Margin of Safety

+81.0%

Fair Value

$470.53

Current Price

$89.44

$381.09 discount

UndervaluedFair: $470.53Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PFBC6 strengths · Avg: 9.3/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
47.5%10/10

Keeps 48 of every $100 in revenue as profit

Operating MarginProfitability
71.7%10/10

Strong operational efficiency at 71.7%

PEG RatioValuation
0.948/10

Growing faster than its price suggests

EPS GrowthGrowth
24.0%8/10

Earnings expanding 24.0% YoY

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

PFBC2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Market CapQuality
$1.09B3/10

Smaller company, higher risk/reward

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PFBC

The strongest argument for PFBC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 47.5% and operating margin at 71.7%. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : PFBC

The primary concerns for PFBC are Revenue Growth, Market Cap.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

PFBC profiles as a value stock while USB is a mature play — different risk/reward profiles.

USB carries more volatility with a beta of 1.04 — expect wider price swings.

USB is growing revenue faster at 5.3% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

PFBC scores higher overall (76/100 vs 75/100), backed by strong 47.5% margins. USB offers better value entry with a 75.8% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Preferred Bank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Preferred Bank offers a variety of commercial banking products and services to small and medium-sized businesses and their real estate owners, entrepreneurs, developers and investors, professionals, and high-net-worth individuals in the United States. The company is headquartered in Los Angeles, California.

Visit Website →

U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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