Comparing Wells Fargo & Company (NYSE:WFC) & OptimumBank (NASDAQ:OPHC)

Wells Fargo & Company (NYSE:WFC) and OptimumBank (NASDAQ:OPHC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Wells Fargo & Company and OptimumBank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wells Fargo & Company	$81.58 billion	2.92	$19.72 billion	$5.57	13.16
OptimumBank	$40.98 million	1.31	$6.28 million	$1.32	3.45

Wells Fargo & Company has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than Wells Fargo & Company, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wells Fargo & Company and OptimumBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wells Fargo & Company	15.73%	12.38%	1.04%
OptimumBank	19.62%	14.10%	1.31%

Insider & Institutional Ownership

75.9% of Wells Fargo & Company shares are held by institutional investors. Comparatively, 7.4% of OptimumBank shares are held by institutional investors. 0.1% of Wells Fargo & Company shares are held by company insiders. Comparatively, 13.9% of OptimumBank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Wells Fargo & Company has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, OptimumBank has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wells Fargo & Company and OptimumBank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wells Fargo & Company	0	6	11	2	2.79
OptimumBank	0	1	0	0	2.00

Wells Fargo & Company presently has a consensus target price of $75.34, indicating a potential upside of 2.80%. OptimumBank has a consensus target price of $5.25, indicating a potential upside of 15.13%. Given OptimumBank’s higher possible upside, analysts plainly believe OptimumBank is more favorable than Wells Fargo & Company.

Summary

Wells Fargo & Company beats OptimumBank on 10 of the 15 factors compared between the two stocks.

About Wells Fargo & Company

Wells Fargo & Co. is a diversified and community-based financial services company, which engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance products and services. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The Consumer Banking and Lending segment offers consumer and small business banking, home lending, credit cards, auto, and personal lending. The Commercial Banking segment provides banking and credit products across industry sectors and municipalities, secured lending and lease products, and treasury management. The Corporate and Investment Banking segment is composed of corporate banking, investment banking, treasury management, commercial real estate lending and servicing, and equity and fixed income solutions, as well as sales, trading, and research capabilities. The Wealth and Investment Management segment refers to personalized wealth management, brokerage, financial planning, lending, private banking, trust, and fiduciary products and services. The company was founded by Henry Wells and William G. Fargo on March 18, 1852 and is headquartered in San Francisco, CA.

About OptimumBank

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, and NOW accounts, as well as time deposits, wire transfers, ACH services, and certificates of deposit. The company also offers residential and commercial real estate, multi-family real estate, land and construction loans; commercial loans are generally used for working capital purposes or for acquiring equipment, inventory, and furniture; and consumer loans for various purposes, including purchases of automobiles, recreational vehicles, boats, home improvements, lines of credit, personal, and deposit account collateralized loans. In addition, it provides Visa debit and ATM cards; cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. The company was founded in 2000 and is based in Fort Lauderdale, Florida.