OptimumBank (NASDAQ:OPHC – Get Free Report) and Bank7 (NASDAQ:BSVN – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Insider and Institutional Ownership
7.4% of OptimumBank shares are held by institutional investors. Comparatively, 23.5% of Bank7 shares are held by institutional investors. 18.7% of OptimumBank shares are held by company insiders. Comparatively, 25.7% of Bank7 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares OptimumBank and Bank7’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OptimumBank | 19.62% | 14.10% | 1.31% |
| Bank7 | 30.55% | 15.96% | 2.13% |
Earnings and Valuation
This table compares OptimumBank and Bank7″s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OptimumBank | $58.79 million | 1.89 | $6.28 million | $0.87 | 10.10 |
| Bank7 | $137.26 million | 4.04 | $43.07 million | $4.37 | 13.30 |
Bank7 has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than Bank7, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for OptimumBank and Bank7, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OptimumBank | 0 | 0 | 3 | 1 | 3.25 |
| Bank7 | 1 | 0 | 4 | 0 | 2.60 |
OptimumBank currently has a consensus target price of $6.67, indicating a potential downside of 24.16%. Bank7 has a consensus target price of $64.33, indicating a potential upside of 10.65%. Given Bank7’s higher probable upside, analysts plainly believe Bank7 is more favorable than OptimumBank.
Volatility and Risk
OptimumBank has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Bank7 has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Summary
Bank7 beats OptimumBank on 13 of the 15 factors compared between the two stocks.
About OptimumBank
OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, and NOW accounts, as well as time deposits, wire transfers, ACH services, and certificates of deposit. The company also offers residential and commercial real estate, multi-family real estate, land and construction loans; commercial loans are generally used for working capital purposes or for acquiring equipment, inventory, and furniture; and consumer loans for various purposes, including purchases of automobiles, recreational vehicles, boats, home improvements, lines of credit, personal, and deposit account collateralized loans. In addition, it provides Visa debit and ATM cards; cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. The company was founded in 2000 and is based in Fort Lauderdale, Florida.
About Bank7
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.
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