Opus Bank (NASDAQ: OPB) and S&T Bancorp (NASDAQ:STBA) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Opus Bank and S&T Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opus Bank 8.30% 3.11% 0.39%
S&T Bancorp 26.44% 9.41% 1.15%

Analyst Ratings

This is a summary of recent recommendations and price targets for Opus Bank and S&T Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Bank 0 3 2 0 2.40
S&T Bancorp 0 3 0 0 2.00

Opus Bank presently has a consensus price target of $28.50, indicating a potential upside of 2.52%. S&T Bancorp has a consensus price target of $39.00, indicating a potential downside of 9.41%. Given Opus Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Opus Bank is more favorable than S&T Bancorp.

Volatility & Risk

Opus Bank has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, S&T Bancorp has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Opus Bank shares are held by institutional investors. Comparatively, 55.1% of S&T Bancorp shares are held by institutional investors. 2.7% of S&T Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Opus Bank and S&T Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opus Bank $336.69 million 2.83 $11.45 million $0.68 40.88
S&T Bancorp $282.41 million 5.33 $71.39 million $2.33 18.48

S&T Bancorp has lower revenue, but higher earnings than Opus Bank. S&T Bancorp is trading at a lower price-to-earnings ratio than Opus Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

S&T Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Opus Bank does not pay a dividend. S&T Bancorp pays out 37.8% of its earnings in the form of a dividend.

About Opus Bank

Opus Bank is a commercial bank. The Company provides banking products, services and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. The Company’s Commercial Bank consists Commercial Banking, Business Banking, Healthcare Banking, Technology Banking, Fiduciary Banking, Institutional Syndications and Commercial Real Estate Banking (CREB), which includes Income Property Banking, its Structured Finance Group and Capital Markets Group. Through its Merchant Bank, the Company offers transaction support, and debt and equity capital to entrepreneurs, small and mid-sized business and middle-market companies. Through its Retail Bank, the Company provides banking solutions for small and mid-sized companies, entrepreneurs, real estate investors, professional and high net worth individuals. Through its Correspondent Bank, the Company offers loan and depository services to other financial institutions.

About S&T Bancorp

S&T Bancorp, Inc. (S&T) is a bank holding company. The Company operates through three segments: Community Banking, Wealth Management and Insurance. The Community Banking segment offers services, which include accepting time and demand deposits, and originating commercial and consumer loans. The Wealth Management segment offers brokerage services, serves as executor and trustee under wills and deeds and as guardian and custodian of employee benefits and provides other trust services. In addition, it is a registered investment advisor that manages private investment accounts for individuals and institutions. The insurance segment includes an insurance agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines. The Company’s subsidiaries include S&T Bank, 9th Street Holdings, Inc. and STBA Capital Trust I.

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