OptimumBank (NASDAQ:OPHC) & NewtekOne (NASDAQ:NEWT) Head-To-Head Survey

NewtekOne (NASDAQ:NEWT) and OptimumBank (NASDAQ:OPHC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for NewtekOne and OptimumBank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	3	0	0	2.00
OptimumBank	0	1	0	0	2.00

NewtekOne presently has a consensus price target of $14.67, suggesting a potential upside of 19.34%. OptimumBank has a consensus price target of $5.25, suggesting a potential upside of 20.69%. Given OptimumBank’s higher possible upside, analysts plainly believe OptimumBank is more favorable than NewtekOne.

Risk and Volatility

NewtekOne has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, OptimumBank has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares NewtekOne and OptimumBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewtekOne	14.92%	18.73%	2.95%
OptimumBank	19.62%	14.10%	1.31%

Insider and Institutional Ownership

38.3% of NewtekOne shares are held by institutional investors. Comparatively, 7.4% of OptimumBank shares are held by institutional investors. 6.5% of NewtekOne shares are held by insiders. Comparatively, 13.9% of OptimumBank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares NewtekOne and OptimumBank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$220.51 million	1.47	$47.33 million	$1.95	6.30
OptimumBank	$39.31 million	1.30	$6.28 million	$1.32	3.30

NewtekOne has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than NewtekOne, indicating that it is currently the more affordable of the two stocks.

Summary

NewtekOne beats OptimumBank on 9 of the 12 factors compared between the two stocks.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.

About OptimumBank

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, and NOW accounts, as well as time deposits, wire transfers, ACH services, and certificates of deposit. The company also offers residential and commercial real estate, multi-family real estate, land and construction loans; commercial loans are generally used for working capital purposes or for acquiring equipment, inventory, and furniture; and consumer loans for various purposes, including purchases of automobiles, recreational vehicles, boats, home improvements, lines of credit, personal, and deposit account collateralized loans. In addition, it provides Visa debit and ATM cards; cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. The company was founded in 2000 and is based in Fort Lauderdale, Florida.