OP Bancorp (NASDAQ:OPBK) versus Orange County Bancorp (NASDAQ:OBT) Critical Contrast

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for OP Bancorp and Orange County Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	1	2	1	3.00
Orange County Bancorp	0	1	3	0	2.75

OP Bancorp currently has a consensus price target of $17.75, suggesting a potential upside of 12.77%. Orange County Bancorp has a consensus price target of $39.25, suggesting a potential upside of 0.38%. Given OP Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe OP Bancorp is more favorable than Orange County Bancorp.

Volatility and Risk

OP Bancorp has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Valuation & Earnings

This table compares OP Bancorp and Orange County Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OP Bancorp	$166.66 million	1.41	$25.64 million	$1.93	8.16
Orange County Bancorp	$158.13 million	3.32	$41.61 million	$3.55	11.01

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

Insider & Institutional Ownership

53.6% of OP Bancorp shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 9.6% of OP Bancorp shares are held by insiders. Comparatively, 8.2% of Orange County Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 1.8%. OP Bancorp pays out 29.0% of its earnings in the form of a dividend. Orange County Bancorp pays out 20.3% 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.

Profitability

This table compares OP Bancorp and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	16.87%	12.74%	1.09%
Orange County Bancorp	30.80%	16.80%	1.78%

Summary

Orange County Bancorp beats OP Bancorp on 9 of the 17 factors compared between the two stocks.

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.

About Orange County Bancorp

Orange County Bancorp, Inc., through its subsidiaries, provides commercial and consumer banking products and services, and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments, and individuals. It accepts various deposits, including interest-bearing and noninterest-bearing demand accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company also offers commercial real estate loans, commercial and industrial loans, commercial real estate construction loans, residential real estate loans, home equity loans, and consumer loans. In addition, it provides traditional trust and administration, asset management, financial planning, and wealth management services. The company operates full-service branches and loan production office in Orange, Westchester, Rockland, and Bronx counties in New York. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.