Affinity Bancshares (NASDAQ:AFBI – Get Free Report) and OP Bancorp (NASDAQ:OPBK – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Analyst Recommendations
This is a summary of current ratings for Affinity Bancshares and OP Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Affinity Bancshares | 0 | 0 | 1 | 0 | 3.00 |
| OP Bancorp | 0 | 1 | 2 | 1 | 3.00 |
OP Bancorp has a consensus target price of $17.75, suggesting a potential upside of 16.32%. Given OP Bancorp’s higher possible upside, analysts clearly believe OP Bancorp is more favorable than Affinity Bancshares.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Affinity Bancshares | $33.36 million | 4.20 | $8.33 million | $1.37 | 16.79 |
| OP Bancorp | $166.66 million | 1.37 | $25.64 million | $1.93 | 7.91 |
OP Bancorp has higher revenue and earnings than Affinity Bancshares. OP Bancorp is trading at a lower price-to-earnings ratio than Affinity Bancshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Affinity Bancshares and OP Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Affinity Bancshares | 16.50% | 7.51% | 1.04% |
| OP Bancorp | 16.87% | 12.59% | 1.08% |
Volatility and Risk
Affinity Bancshares has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Institutional and Insider Ownership
39.3% of Affinity Bancshares shares are owned by institutional investors. Comparatively, 53.6% of OP Bancorp shares are owned by institutional investors. 12.3% of Affinity Bancshares shares are owned by company insiders. Comparatively, 9.6% of OP Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
OP Bancorp beats Affinity Bancshares on 11 of the 14 factors compared between the two stocks.
About Affinity Bancshares
Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.
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.
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