OptimumBank (NASDAQ:OPHC) and Hope Bancorp (NASDAQ:HOPE) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of current recommendations for OptimumBank and Hope Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimumBank	0	1	0	0	2.00
Hope Bancorp	0	2	1	0	2.33

OptimumBank currently has a consensus price target of $5.25, indicating a potential upside of 14.11%. Hope Bancorp has a consensus price target of $12.50, indicating a potential upside of 3.31%. Given OptimumBank’s higher probable upside, analysts clearly believe OptimumBank is more favorable than Hope Bancorp.

Risk and Volatility

OptimumBank has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Hope Bancorp has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

7.4% of OptimumBank shares are owned by institutional investors. Comparatively, 84.0% of Hope Bancorp shares are owned by institutional investors. 13.9% of OptimumBank shares are owned by company insiders. Comparatively, 5.3% of Hope Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimumBank	19.62%	14.10%	1.31%
Hope Bancorp	9.81%	5.52%	0.65%

Valuation and Earnings

This table compares OptimumBank and Hope Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimumBank	$39.23 million	1.18	$6.28 million	$1.32	3.49
Hope Bancorp	$1.09 billion	1.33	$133.67 million	$0.84	14.40

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

Summary

Hope Bancorp beats OptimumBank on 8 of the 14 factors compared between the two stocks.

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.

About Hope Bancorp

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans. In addition, it provides internet banking and bill-pay, remote deposit capture, lock box, and ACH origination services; treasury management services; foreign currency exchange transactions; interest rate contracts and wealth management services; automated teller machine services; and engages in investment activities. Hope Bancorp, Inc. was founded in 1986 and is headquartered in Los Angeles, California.