Head to Head Analysis: RBB Bancorp (NASDAQ:RBB) versus OptimumBank (NASDAQ:OPHC)

OptimumBank (NASDAQ:OPHC) and RBB Bancorp (NASDAQ:RBB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

7.4% of OptimumBank shares are held by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are held by institutional investors. 18.7% of OptimumBank shares are held by insiders. Comparatively, 6.8% of RBB Bancorp shares are held 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for OptimumBank and RBB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimumBank	0	0	3	1	3.25
RBB Bancorp	0	3	3	0	2.50

OptimumBank currently has a consensus target price of $6.67, suggesting a potential downside of 23.55%. RBB Bancorp has a consensus target price of $25.50, suggesting a potential downside of 2.04%. Given RBB Bancorp’s higher possible upside, analysts clearly believe RBB Bancorp is more favorable than OptimumBank.

Risk & Volatility

OptimumBank has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares OptimumBank and RBB Bancorp’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%
RBB Bancorp	17.26%	7.94%	0.99%

Valuation & Earnings

This table compares OptimumBank and RBB Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimumBank	$58.79 million	1.87	$6.28 million	$0.87	10.02
RBB Bancorp	$238.00 million	1.85	$31.95 million	$2.43	10.71

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

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.