Comparing OP Bancorp (NASDAQ:OPBK) & Pathward Financial (NASDAQ:CASH)

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

Insider and Institutional Ownership

92.7% of Pathward Financial shares are owned by institutional investors. Comparatively, 53.6% of OP Bancorp shares are owned by institutional investors. 1.4% of Pathward Financial shares are owned by insiders. Comparatively, 9.6% of OP Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathward Financial	21.11%	20.82%	2.40%
OP Bancorp	17.09%	12.79%	1.10%

Analyst Ratings

This is a summary of recent ratings and target prices for Pathward Financial and OP Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathward Financial	0	0	3	0	3.00
OP Bancorp	0	2	2	0	2.50

Pathward Financial presently has a consensus price target of $101.00, indicating a potential upside of 34.04%. OP Bancorp has a consensus price target of $17.75, indicating a potential upside of 18.57%. Given Pathward Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Pathward Financial is more favorable than OP Bancorp.

Dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Pathward Financial pays out 2.5% of its earnings in the form of a dividend. OP Bancorp pays out 28.0% 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.

Volatility and Risk

Pathward Financial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares Pathward Financial 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
Pathward Financial	$684.00 million	2.29	$175.67 million	$8.14	9.26
OP Bancorp	$102.06 million	2.19	$25.64 million	$2.00	7.49

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

Summary

Pathward Financial beats OP Bancorp on 14 of the 16 factors compared between the two stocks.

About Pathward Financial

Pathward Financial, Inc. is a financial services holding company whose principal subsidiary is Pathward, National Association. Formerly known as Meta Financial Group, the company adopted the Pathward name in 2022; its bank subsidiary was also renamed as part of the rebranding. Pathward provides banking, payments and specialty finance services to consumers and businesses across the United States. Its offerings include deposit accounts, prepaid and payment solutions, and services that support tax refund disbursements.

About OP Bancorp

OP Bancorp is the bank holding company for Open Bank, a full-service commercial bank headquartered in Los Angeles. The bank provides deposit accounts, commercial and small-business lending, and other banking services to businesses and individuals. Open Bank has historically focused on serving Korean-American customers as well as other small and midsize businesses, professionals, and individuals. Its operations include markets in California and other U.S. regions, including Texas and Georgia.