Bay National (OTCMKTS:BAYN) versus OptimumBank (NASDAQ:OPHC) Financial Contrast

Bay National (OTCMKTS:BAYN) and OptimumBank (NASDAQ:OPHC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Volatility and Risk

Bay National has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, OptimumBank has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Bay National and OptimumBank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay National	0	0	0	0	0.00
OptimumBank	0	1	2	0	2.67

OptimumBank has a consensus price target of $6.75, indicating a potential upside of 21.95%. Given OptimumBank’s stronger consensus rating and higher possible upside, analysts plainly believe OptimumBank is more favorable than Bay National.

Valuation and Earnings

This table compares Bay National and OptimumBank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay National	N/A	N/A	N/A	N/A	N/A
OptimumBank	$53.67 million	1.25	$6.28 million	$0.88	6.29

OptimumBank has higher revenue and earnings than Bay National.

Insider and Institutional Ownership

7.4% of OptimumBank shares are owned by institutional investors. 17.8% of Bay National shares are owned by company insiders. Comparatively, 18.7% of OptimumBank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Bay National and OptimumBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay National	N/A	N/A	N/A
OptimumBank	19.62%	14.10%	1.31%

Summary

OptimumBank beats Bay National on 9 of the 10 factors compared between the two stocks.

About Bay National

Bay National Corp. operates as a bank holding company. It offers loans, deposits, investments and other banking and financial services through its subsidiary, Bay National Bank. The company was founded in 1999 and is headquartered in Lutherville, MD.

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.