OP Bancorp (NASDAQ:OPBK) & Home Bancorp (NASDAQ:HBCP) Head-To-Head Comparison

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

Dividends

OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Home Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. OP Bancorp pays out 29.0% of its earnings in the form of a dividend. Home Bancorp pays out 21.4% 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. Home Bancorp has increased its dividend for 10 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	16.87%	12.59%	1.08%
Home Bancorp	22.23%	10.65%	1.32%

Risk and Volatility

OP Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Home Bancorp has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for OP Bancorp and Home Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	1	2	1	3.00
Home Bancorp	0	3	1	1	2.60

OP Bancorp currently has a consensus price target of $17.75, indicating a potential upside of 16.62%. Home Bancorp has a consensus price target of $69.50, indicating a potential upside of 0.03%. Given OP Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe OP Bancorp is more favorable than Home Bancorp.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OP Bancorp	$166.66 million	1.36	$25.64 million	$1.93	7.89
Home Bancorp	$209.23 million	2.60	$46.06 million	$5.98	11.62

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

Insider and Institutional Ownership

53.6% of OP Bancorp shares are held by institutional investors. Comparatively, 49.4% of Home Bancorp shares are held by institutional investors. 9.6% of OP Bancorp shares are held by insiders. Comparatively, 6.2% of Home Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Home Bancorp beats OP Bancorp on 9 of the 17 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 Home Bancorp

Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana, Mississippi, and Texas. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products comprising one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers credit cards and online banking services. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.