BOK Financial (NASDAQ:BOKF) & OP Bancorp (NASDAQ:OPBK) Critical Survey

BOK Financial (NASDAQ:BOKF) and OP Bancorp (NASDAQ:OPBK) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares BOK Financial and OP Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BOK Financial	$3.38 billion	2.24	$577.99 million	$9.88	12.63
OP Bancorp	$97.00 million	2.15	$25.64 million	$1.82	7.68

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

Dividends

BOK Financial pays an annual dividend of $2.52 per share and has a dividend yield of 2.0%. OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.0%. BOK Financial pays out 25.5% of its earnings in the form of a dividend. OP Bancorp pays out 30.8% 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. BOK Financial has increased its dividend for 20 consecutive years.

Volatility and Risk

BOK Financial has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BOK Financial	18.05%	9.89%	1.14%
OP Bancorp	16.12%	12.20%	1.04%

Insider and Institutional Ownership

34.4% of BOK Financial shares are owned by institutional investors. Comparatively, 53.6% of OP Bancorp shares are owned by institutional investors. 63.5% of BOK Financial 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, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for BOK Financial and OP Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BOK Financial	0	8	3	0	2.27
OP Bancorp	0	2	2	0	2.50

BOK Financial presently has a consensus target price of $134.91, indicating a potential upside of 8.08%. OP Bancorp has a consensus target price of $16.50, indicating a potential upside of 18.03%. Given OP Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe OP Bancorp is more favorable than BOK Financial.

Summary

BOK Financial beats OP Bancorp on 12 of the 17 factors compared between the two stocks.

About BOK Financial

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and Internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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.