Head-To-Head Analysis: OP Bancorp (NASDAQ:OPBK) and Red River Bancshares (NASDAQ:RRBI)

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

Earnings & Valuation

This table compares Red River Bancshares and OP Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$157.67 million	2.61	$34.24 million	$5.67	10.68
OP Bancorp	$88.02 million	2.15	$21.07 million	$1.48	8.61

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Red River Bancshares and OP Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	1	0	3.00
OP Bancorp	0	1	0	0	2.00

Red River Bancshares presently has a consensus target price of $67.00, indicating a potential upside of 10.69%. OP Bancorp has a consensus target price of $15.50, indicating a potential upside of 21.57%. Given OP Bancorp’s higher probable upside, analysts plainly believe OP Bancorp is more favorable than Red River Bancshares.

Dividends

Red River Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 0.8%. OP Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. Red River Bancshares pays out 8.5% of its earnings in the form of a dividend. OP Bancorp pays out 32.4% 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. Red River Bancshares has raised its dividend for 3 consecutive years.

Volatility and Risk

Red River Bancshares has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

27.6% of Red River Bancshares shares are owned by institutional investors. Comparatively, 53.6% of OP Bancorp shares are owned by institutional investors. 15.9% of Red River Bancshares shares are owned by insiders. Comparatively, 20.4% of OP Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Red River Bancshares and OP Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	23.62%	11.85%	1.23%
OP Bancorp	13.91%	10.81%	0.92%

Summary

Red River Bancshares beats OP Bancorp on 12 of the 17 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

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.