OP Bancorp (NASDAQ:OPBK) versus Virginia National Bankshares (NASDAQ:VABK) Head-To-Head Review

Virginia National Bankshares (NASDAQ:VABK) and OP Bancorp (NASDAQ:OPBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Earnings & Valuation

This table compares Virginia National Bankshares and OP Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virginia National Bankshares	$83.34 million	3.07	$19.26 million	$4.56	10.32
OP Bancorp	$166.66 million	1.38	$25.64 million	$1.93	7.98

OP Bancorp has higher revenue and earnings than Virginia National Bankshares. OP Bancorp is trading at a lower price-to-earnings ratio than Virginia National Bankshares, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

37.4% of Virginia National Bankshares shares are held by institutional investors. Comparatively, 53.6% of OP Bancorp shares are held by institutional investors. 14.4% of Virginia National Bankshares shares are held by insiders. Comparatively, 9.6% of OP Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Virginia National Bankshares and OP Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virginia National Bankshares	0	1	0	0	2.00
OP Bancorp	0	1	2	1	3.00

OP Bancorp has a consensus price target of $17.75, suggesting a potential upside of 15.18%. Given OP Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe OP Bancorp is more favorable than Virginia National Bankshares.

Dividends

Virginia National Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.1%. OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Virginia National Bankshares pays out 31.6% of its earnings in the form of a dividend. OP Bancorp pays out 29.0% 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. OP Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Virginia National Bankshares has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Virginia National Bankshares and OP Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virginia National Bankshares	28.18%	13.36%	1.52%
OP Bancorp	16.87%	12.59%	1.08%

Summary

OP Bancorp beats Virginia National Bankshares on 10 of the 17 factors compared between the two stocks.

About Virginia National Bankshares

Virginia National Bankshares Corporation operates as the holding company for Virginia National Bank that provides a range of commercial and retail banking services. The company operates through Bank, Sturman Wealth Advisors, VNB Trust and Estate Services, and Masonry Capital segments. It provides checking accounts, demand deposits, NOW accounts, money market deposit accounts, time deposits, certificates of deposit, individual retirement accounts, and other depository services. In addition, the company offers commercial and industrial loans, real estate construction and land loans, commercial real estate loans, and 1-4 family residential mortgages, as well as consumer loans comprising student loans, revolving credit, and other fixed payment loans. Further, it provides automated teller machines, internet banking, treasury, and cash management services; merchant and debit card services; and wealth and investment advisory, and brokerage services. Additionally, the company offers investment management, corporate trustee, trust and estate administration, IRA administration, house investment management, and custody services. It serves individuals, businesses, and charitable organizations in the Charlottesville/Albemarle County, Fauquier County, Manassas, Prince William County, Richmond, and Winchester market areas in Virginia. Virginia National Bankshares Corporation was founded in 1998 and is headquartered in Charlottesville, Virginia.

About OP Bancorp

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as well as certificates of deposit. The company also provides commercial real estate, small business administration, commercial and industrial business, single-family residential, term, consumer, and home mortgage loans; trade financing products; and letters of credit, and SWIFT and export advice. In addition, it offers debit and credit card, online transfer and bill payment, electronic delivery of customer statements, and mobile banking solutions for iPhone and Android phones, including remote check deposit with mobile bill pay; direct deposits, cashier's checks, person to person payments, wire transfers, and automated clearing house (ACH) services; and cash management services, including balance reporting, transfers between accounts, wire transfer initiation, ACH origination, and stop payment services, as well as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company operates full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara in California; and Carrollton, Texas; and operates loan production offices in Pleasanton, California; Atlanta, Georgia; Aurora, Colorado; and Lynnwood in Washington. The company was founded in 2005 and is headquartered in Los Angeles, California.