Head to Head Review: First Foundation (NYSE:FFWM) & OP Bancorp (NASDAQ:OPBK)

First Foundation (NYSE:FFWM) and OP Bancorp (NASDAQ:OPBK) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Foundation	-15.29%	-1.20%	-0.09%
OP Bancorp	13.91%	10.72%	0.91%

Analyst Recommendations

This is a summary of recent ratings for First Foundation and OP Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Foundation	0	0	0	0	0.00
OP Bancorp	0	2	0	0	2.00

OP Bancorp has a consensus price target of $15.50, indicating a potential upside of 7.19%. Given OP Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe OP Bancorp is more favorable than First Foundation.

Volatility and Risk

First Foundation has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

73.1% of First Foundation shares are held by institutional investors. Comparatively, 53.6% of OP Bancorp shares are held by institutional investors. 9.5% of First Foundation shares are held by insiders. Comparatively, 20.4% of OP Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First Foundation and OP Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Foundation	$545.12 million	0.91	-$92.41 million	($1.41)	-4.25
OP Bancorp	$88.02 million	2.45	$21.07 million	$1.48	9.77

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

Summary

OP Bancorp beats First Foundation on 10 of the 13 factors compared between the two stocks.

About First Foundation

First Foundation Inc., through its subsidiaries, provides personal banking, business banking, and private wealth management services in the United States. It operates through two segments, Banking and Wealth Management. The company offers a range of bank deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, and commercial term loans and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. It also provides various specialized services comprising trust services, internet and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, the company offers investment management and financial planning services; treasury management services; advisory and coordination services in the areas of estate planning, retirement planning, and charitable and business ownership issues; and financial, investment, and economic advisory and related services. Further, it provides support services, including the processing and transmission of financial and economic data for charitable organizations. The company operates through a network of 28 branch offices and 3 loan production offices in California, Nevada, Texas, and Hawaii. First Foundation Inc. was founded in 1985 and is headquartered in Dallas, Texas.

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.