Financial Contrast: PCB Bancorp (NASDAQ:PCB) vs. OP Bancorp (NASDAQ:OPBK)

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

Dividends

PCB Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. OP Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.5%. PCB Bancorp pays out 37.6% 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. PCB Bancorp has increased its dividend for 7 consecutive years. PCB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares PCB Bancorp and OP Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCB Bancorp	$191.91 million	1.53	$25.81 million	$2.13	9.63
OP Bancorp	$154.05 million	1.31	$21.07 million	$1.48	9.18

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

Insider & Institutional Ownership

33.0% of PCB Bancorp shares are held by institutional investors. Comparatively, 53.6% of OP Bancorp shares are held by institutional investors. 25.9% of PCB Bancorp shares are held by company insiders. Comparatively, 20.4% of OP Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PCB Bancorp and OP Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCB Bancorp	0	2	1	0	2.33
OP Bancorp	0	2	1	0	2.33

PCB Bancorp currently has a consensus price target of $22.25, suggesting a potential upside of 8.43%. OP Bancorp has a consensus price target of $15.50, suggesting a potential upside of 14.14%. Given OP Bancorp’s higher possible upside, analysts clearly believe OP Bancorp is more favorable than PCB Bancorp.

Volatility & Risk

PCB Bancorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PCB Bancorp	15.82%	10.58%	1.02%
OP Bancorp	13.91%	10.72%	0.91%

Summary

PCB Bancorp beats OP Bancorp on 10 of the 15 factors compared between the two stocks.

About PCB Bancorp

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.

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.