OP Bancorp (NASDAQ:OPBK – Get Free Report) and Citizens Financial Services (NASDAQ:CZFS – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Earnings & Valuation
This table compares OP Bancorp and Citizens Financial Services”s gross revenue, earnings per share 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 | 7.98 |
| Citizens Financial Services | $173.51 million | 2.26 | $36.57 million | $8.55 | 9.51 |
Profitability
This table compares OP Bancorp and Citizens Financial Services’ 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% |
| Citizens Financial Services | 23.31% | 12.06% | 1.33% |
Insider and Institutional Ownership
53.6% of OP Bancorp shares are held by institutional investors. Comparatively, 22.5% of Citizens Financial Services shares are held by institutional investors. 9.6% of OP Bancorp shares are held by company insiders. Comparatively, 5.5% of Citizens Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Citizens Financial Services pays an annual dividend of $2.04 per share and has a dividend yield of 2.5%. OP Bancorp pays out 29.0% of its earnings in the form of a dividend. Citizens Financial Services pays out 23.9% 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.
Risk and Volatility
OP Bancorp has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Citizens Financial Services has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for OP Bancorp and Citizens Financial Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OP Bancorp | 0 | 1 | 2 | 1 | 3.00 |
| Citizens Financial Services | 0 | 1 | 1 | 1 | 3.00 |
OP Bancorp currently has a consensus target price of $17.75, suggesting a potential upside of 15.18%. Given OP Bancorp’s higher possible upside, equities research analysts clearly believe OP Bancorp is more favorable than Citizens Financial Services.
Summary
Citizens Financial Services beats OP Bancorp on 8 of the 15 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 Citizens Financial Services
Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.
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