Financial Analysis: OP Bancorp (NASDAQ:OPBK) versus California Business Bank (OTCMKTS:CABB)

OP Bancorp (NASDAQ:OPBK) and California Business Bank (OTCMKTS:CABB) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares OP Bancorp and California Business Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	13.91%	10.72%	0.91%
California Business Bank	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for OP Bancorp and California Business Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	1	0	0	2.00
California Business Bank	0	0	0	0	0.00

OP Bancorp presently has a consensus price target of $15.50, suggesting a potential upside of 13.06%. Given OP Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe OP Bancorp is more favorable than California Business Bank.

Earnings & Valuation

This table compares OP Bancorp and California Business Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OP Bancorp	$154.05 million	1.33	$21.07 million	$1.48	9.26
California Business Bank	N/A	N/A	N/A	N/A	N/A

OP Bancorp has higher revenue and earnings than California Business Bank.

Institutional & Insider Ownership

53.6% of OP Bancorp shares are held by institutional investors. 20.4% of OP Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

OP Bancorp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, California Business Bank has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Summary

OP Bancorp beats California Business Bank on 9 of the 9 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 California Business Bank

California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was founded in 2005 and is headquartered in Irvine, California.