Head-To-Head Analysis: OptimumBank (NASDAQ:OPHC) and Greene County Bancorp (NASDAQ:GCBC)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Greene County Bancorp and OptimumBank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greene County Bancorp	0	0	1	0	3.00
OptimumBank	0	0	3	1	3.25

OptimumBank has a consensus target price of $6.67, suggesting a potential downside of 24.16%. Given OptimumBank’s stronger consensus rating and higher possible upside, analysts plainly believe OptimumBank is more favorable than Greene County Bancorp.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greene County Bancorp	$145.79 million	4.02	$41.02 million	$2.41	14.27
OptimumBank	$58.79 million	1.89	$6.28 million	$0.87	10.10

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

Profitability

This table compares Greene County Bancorp and OptimumBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greene County Bancorp	28.14%	15.60%	1.31%
OptimumBank	19.62%	14.10%	1.31%

Risk & Volatility

Greene County Bancorp has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, OptimumBank has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Insider and Institutional Ownership

13.4% of Greene County Bancorp shares are held by institutional investors. Comparatively, 7.4% of OptimumBank shares are held by institutional investors. 4.0% of Greene County Bancorp shares are held by insiders. Comparatively, 18.7% of OptimumBank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Greene County Bancorp beats OptimumBank on 9 of the 14 factors compared between the two stocks.

About Greene County Bancorp

Greene County Bancorp, Inc. operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company's deposit products include savings, NOW accounts, money market accounts, certificates of deposit, non-interest bearing checking accounts, and individual retirement accounts. Its loan portfolio consists of residential, construction and land, and multifamily loans; commercial real estate mortgage loans; consumer loans, such as loans on new and used automobiles, personal loans, and home equity loans, as well as other consumer installment loans, including passbook loans, unsecured home improvement loans, recreational vehicle loans, and deposit account overdrafts; and commercial loans. The company was founded in 1889 and is based in Catskill, New York. Greene County Bancorp, Inc. is a subsidiary of Greene County Bancorp, MHC.

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.