Head-To-Head Analysis: Byline Bancorp (NYSE:BY) and OP Bancorp (NASDAQ:OPBK)

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

Valuation & Earnings

This table compares OP Bancorp and Byline Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OP Bancorp	$166.66 million	1.32	$25.64 million	$2.00	7.36
Byline Bancorp	$633.15 million	2.74	$130.05 million	$3.43	11.19

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

Insider & Institutional Ownership

53.6% of OP Bancorp shares are owned by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are owned by institutional investors. 9.6% of OP Bancorp shares are owned by company insiders. Comparatively, 29.1% of Byline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

OP Bancorp has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Dividends

OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. OP Bancorp pays out 28.0% of its earnings in the form of a dividend. Byline Bancorp pays out 16.3% 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. Byline Bancorp has increased its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	17.09%	12.89%	1.11%
Byline Bancorp	24.06%	12.04%	1.57%

Analyst Recommendations

This is a summary of current ratings for OP Bancorp and Byline Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	2	2	0	2.50
Byline Bancorp	0	3	3	0	2.50

OP Bancorp currently has a consensus target price of $17.75, suggesting a potential upside of 20.58%. Byline Bancorp has a consensus target price of $43.00, suggesting a potential upside of 12.00%. Given OP Bancorp’s higher possible upside, equities analysts clearly believe OP Bancorp is more favorable than Byline Bancorp.

Summary

Byline Bancorp beats OP Bancorp on 13 of the 16 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 Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.