OP Bancorp (NASDAQ:OPBK) versus Fifth Third Bancorp (NASDAQ:FITB) Head to Head Comparison

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

Dividends

OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Fifth Third Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. OP Bancorp pays out 29.0% of its earnings in the form of a dividend. Fifth Third Bancorp pays out 54.6% 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. Fifth Third Bancorp has raised its dividend for 14 consecutive years. OP Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares OP Bancorp and Fifth Third Bancorp”s top-line 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	1.38	$25.64 million	$1.93	8.01
Fifth Third Bancorp	$10.49 billion	4.75	$2.52 billion	$2.93	18.75

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

Volatility and Risk

OP Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Fifth Third Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

53.6% of OP Bancorp shares are owned by institutional investors. Comparatively, 83.8% of Fifth Third Bancorp shares are owned by institutional investors. 9.6% of OP Bancorp shares are owned by company insiders. Comparatively, 0.5% of Fifth Third Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for OP Bancorp and Fifth Third 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
Fifth Third Bancorp	0	5	17	1	2.83

OP Bancorp currently has a consensus target price of $17.75, suggesting a potential upside of 14.81%. Fifth Third Bancorp has a consensus target price of $60.54, suggesting a potential upside of 10.21%. Given OP Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe OP Bancorp is more favorable than Fifth Third Bancorp.

Profitability

This table compares OP Bancorp and Fifth Third 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%
Fifth Third Bancorp	15.89%	12.39%	1.20%

Summary

Fifth Third Bancorp beats OP Bancorp on 10 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 Fifth Third Bancorp

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.