Head-To-Head Comparison: Avidbank (OTCMKTS:AVBH) & Hope Bancorp (NASDAQ:HOPE)

Hope Bancorp (NASDAQ:HOPE) and Avidbank (OTCMKTS:AVBH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Earnings and Valuation

This table compares Hope Bancorp and Avidbank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hope Bancorp	$1.00 billion	1.50	$99.63 million	$0.39	30.00
Avidbank	$47.45 million	6.12	$21.01 million	($1.82)	-14.56

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hope Bancorp and Avidbank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hope Bancorp	0	3	1	0	2.25
Avidbank	0	0	1	0	3.00

Hope Bancorp currently has a consensus price target of $13.25, suggesting a potential upside of 13.25%. Avidbank has a consensus price target of $25.00, suggesting a potential downside of 5.66%. Given Hope Bancorp’s higher probable upside, research analysts plainly believe Hope Bancorp is more favorable than Avidbank.

Volatility and Risk

Hope Bancorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Avidbank has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Profitability

This table compares Hope Bancorp and Avidbank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hope Bancorp	4.89%	4.70%	0.58%
Avidbank	14.31%	N/A	N/A

Institutional & Insider Ownership

84.0% of Hope Bancorp shares are held by institutional investors. Comparatively, 15.9% of Avidbank shares are held by institutional investors. 5.2% of Hope Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Hope Bancorp beats Avidbank on 10 of the 13 factors compared between the two stocks.

About Hope Bancorp

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans. In addition, it provides internet banking and bill-pay, remote deposit capture, lock box, and ACH origination services; treasury management services; foreign currency exchange transactions; interest rate contracts and wealth management services; automated teller machine services; and engages in investment activities. Hope Bancorp, Inc. was founded in 1986 and is headquartered in Los Angeles, California.

About Avidbank

Avidbank Holdings, Inc. operates as a bank holding company for Avidbank that provides financial products and services to businesses and individuals in the Santa Clara, San Mateo, and San Francisco counties. The company offers business and personal deposit products, such as checking, money market, and savings accounts; and certificates of deposit. It also provides personal lending products, including secured and unsecured lines of credit, home equity lines of credit, remodel and new home construction loans, and term loans; corporate banking comprising working capital lines of credit, equipment loans, acquisition financing, shareholder buyouts, ESOP loans, and owner-occupied real estate loans; and commercial real estate lending, such as permanent loans and bridge financing products. In addition, the company offers construction lending products, including land acquisition loans, pre-development loans, construction spec SFD, owner-occupied SFD, condominiums, subdivision, unsecured business lines, real estate bridge loans, and RLOC real estate secured loans. Further, it provides various financing solutions, such as fund finance, structured finance, venture lending, asset-based lending, and sponsor finance. Additionally, the company offers various services, such as automated clearing house payments and collections, bill pay, positive pay, wire transfer, lockbox, merchant, remote deposit capture, risk and fraud analytics services, ATM/debit cards, credit cards, business courier, cash management, and complimentary notary services. Furthermore, it offers online and mobile banking services. The company was founded in 2003 and is headquartered in San Jose, California.