Head-To-Head Contrast: OP Bancorp (NASDAQ:OPBK) vs. BancFirst (NASDAQ:BANF)

OP Bancorp (NASDAQ:OPBK) and BancFirst (NASDAQ:BANF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OP Bancorp	$154.05 million	1.17	$21.07 million	$1.42	8.57
BancFirst	$645.29 million	6.38	$216.35 million	$6.61	18.75

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

Risk and Volatility

OP Bancorp has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, BancFirst has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	13.61%	10.51%	0.90%
BancFirst	24.05%	13.90%	1.66%

Analyst Ratings

This is a summary of current recommendations and price targets for OP Bancorp and BancFirst, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	1	0	0	2.00
BancFirst	1	2	0	0	1.67

OP Bancorp presently has a consensus price target of $18.00, indicating a potential upside of 47.88%. BancFirst has a consensus price target of $113.33, indicating a potential downside of 8.54%. Given OP Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe OP Bancorp is more favorable than BancFirst.

Insider and Institutional Ownership

53.6% of OP Bancorp shares are held by institutional investors. Comparatively, 51.7% of BancFirst shares are held by institutional investors. 20.4% of OP Bancorp shares are held by insiders. Comparatively, 32.4% of BancFirst shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

OP Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.9%. BancFirst pays an annual dividend of $1.84 per share and has a dividend yield of 1.5%. OP Bancorp pays out 33.8% of its earnings in the form of a dividend. BancFirst pays out 27.8% 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. BancFirst has raised its dividend for 31 consecutive years.

Summary

BancFirst beats OP Bancorp on 12 of the 16 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 BancFirst

BancFirst Corporation operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. The company operates through BancFirst Metropolitan Banks, BancFirst Community Banks, Pegasus, Worthington, and Other Financial Services segments. It offers checking accounts, negotiable order of withdrawal accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts, and certificates of deposit, as well as overdraft protection and auto draft services. The company also provides commercial and agricultural non-real estate loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; lending services that include private banking, energy, commercial and residential real estate, and commercial and industrial loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, it engages in the investment management and administration of trusts for individuals, corporations, and employee benefit plans, as well as bond trustee and paying agent business for various Oklahoma municipalities and governmental entities; and provision of item processing, research, and other correspondent banking services to financial institutions and governmental units. Further, the company provides insurance agency services; depository and funds transfer, collection, safe deposit box, cash management, and other services. It serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. The company was formerly known as United Community Corporation and changed its name to BancFirst Corporation in November 1988. BancFirst Corporation was incorporated in 1984 and is headquartered in Oklahoma City, Oklahoma.