Opus Bank (NASDAQ: OPB) and Pacific Premier Bancorp (NASDAQ:PPBI) are both small-cap financials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
This table compares Opus Bank and Pacific Premier Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Premier Bancorp||21.82%||9.21%||1.25%|
This is a breakdown of recent ratings and price targets for Opus Bank and Pacific Premier Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Premier Bancorp||0||1||4||0||2.80|
Opus Bank currently has a consensus price target of $28.50, suggesting a potential upside of 3.64%. Pacific Premier Bancorp has a consensus price target of $45.00, suggesting a potential upside of 11.80%. Given Pacific Premier Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Pacific Premier Bancorp is more favorable than Opus Bank.
Valuation & Earnings
This table compares Opus Bank and Pacific Premier Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Opus Bank||$336.69 million||2.80||$11.45 million||$0.69||39.86|
|Pacific Premier Bancorp||$186.19 million||9.99||$40.10 million||$1.62||24.85|
Pacific Premier Bancorp has lower revenue, but higher earnings than Opus Bank. Pacific Premier Bancorp is trading at a lower price-to-earnings ratio than Opus Bank, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.5% of Opus Bank shares are owned by institutional investors. Comparatively, 71.4% of Pacific Premier Bancorp shares are owned by institutional investors. 4.6% of Pacific Premier Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Opus Bank has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Pacific Premier Bancorp beats Opus Bank on 10 of the 14 factors compared between the two stocks.
Opus Bank Company Profile
Opus Bank is a commercial bank. The Company provides banking products, services and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. The Company’s Commercial Bank consists Commercial Banking, Business Banking, Healthcare Banking, Technology Banking, Fiduciary Banking, Institutional Syndications and Commercial Real Estate Banking (CREB), which includes Income Property Banking, its Structured Finance Group and Capital Markets Group. Through its Merchant Bank, the Company offers transaction support, and debt and equity capital to entrepreneurs, small and mid-sized business and middle-market companies. Through its Retail Bank, the Company provides banking solutions for small and mid-sized companies, entrepreneurs, real estate investors, professional and high net worth individuals. Through its Correspondent Bank, the Company offers loan and depository services to other financial institutions.
Pacific Premier Bancorp Company Profile
Pacific Premier Bancorp, Inc. is a bank holding company. The Company’s subsidiary, Pacific Premier Bank (the Bank), is a California state-chartered commercial bank. The Company’s principal business is attracting deposits from small and middle market businesses and consumers and investing those deposits together with funds generated from operations and borrowings, primarily in commercial business loans and various types of commercial real estate (CRE) loans. The Company provides banking services within its targeted markets in California to businesses, including the owners and employees of those businesses, professionals, real estate investors and non-profit organizations. Additionally, it provides certain banking services nationwide. It also provides customized cash management, electronic banking services and credit facilities to Home Owners Associations (HOA) and HOA management companies nationwide. It provides the United States Small Business Administration (SBA) loans nationwide.
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