Contrasting OP Bancorp (OPBK) & The Competition

OP Bancorp (NASDAQ:OPBK) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare OP Bancorp to similar businesses based on the strength of its profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current ratings for OP Bancorp and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	2	2	0	2.50
OP Bancorp Competitors	7464	30192	27759	1465	2.35

OP Bancorp currently has a consensus target price of $17.75, indicating a potential upside of 17.24%. As a group, “Banks” companies have a potential upside of 15.53%. Given OP Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe OP Bancorp is more favorable than its peers.

Dividends

OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. OP Bancorp pays out 28.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend.

Profitability

This table compares OP Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	17.09%	12.89%	1.11%
OP Bancorp Competitors	15.66%	9.44%	0.93%

Volatility and Risk

OP Bancorp has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, OP Bancorp’s peers have a beta of 0.52, suggesting that their average share price is 48% less volatile than the S&P 500.

Earnings & Valuation

This table compares OP Bancorp and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OP Bancorp	$166.66 million	$25.64 million	7.57
OP Bancorp Competitors	$9.95 billion	$2.42 billion	17.38

OP Bancorp’s peers have higher revenue and earnings than OP Bancorp. OP Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

53.6% of OP Bancorp shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 9.6% of OP Bancorp shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies 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.

Summary

OP Bancorp beats its peers on 9 of the 15 factors compared.

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.