Contrasting OP Bancorp (NASDAQ:OPBK) and Home Bancorp (NASDAQ:HBCP)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Bancorp	$209.23 million	2.59	$46.06 million	$5.98	11.58
OP Bancorp	$166.66 million	1.38	$25.64 million	$1.93	7.96

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.

Analyst Ratings

This is a summary of current recommendations for Home Bancorp and OP Bancorp, as provided by MarketBeat.

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

Home Bancorp currently has a consensus target price of $69.50, suggesting a potential upside of 0.40%. OP Bancorp has a consensus target price of $17.75, suggesting a potential upside of 15.56%. Given OP Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe OP Bancorp is more favorable than Home Bancorp.

Profitability

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

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

Institutional and Insider Ownership

49.4% of Home Bancorp shares are owned by institutional investors. Comparatively, 53.6% of OP Bancorp shares are owned by institutional investors. 6.2% of Home Bancorp shares are owned by company insiders. Comparatively, 9.6% of OP Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

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

Dividends

Home Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Home Bancorp pays out 21.4% of its earnings in the form of a dividend. OP Bancorp pays out 29.0% 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 raised its dividend for 10 consecutive years.

Summary

Home Bancorp beats OP Bancorp on 9 of the 17 factors compared between the two stocks.

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.

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.