Opus Bank (NASDAQ:OPB) and Summit State Bank (NASDAQ:SSBI) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Opus Bank and Summit State Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Bank 0 1 3 0 2.75
Summit State Bank 0 0 0 0 N/A

Opus Bank presently has a consensus target price of $29.00, suggesting a potential upside of 93.20%. Given Opus Bank’s higher probable upside, equities analysts plainly believe Opus Bank is more favorable than Summit State Bank.

Profitability

This table compares Opus Bank and Summit State Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opus Bank 18.91% 6.47% 0.86%
Summit State Bank 19.83% N/A N/A

Dividends

Opus Bank pays an annual dividend of $0.44 per share and has a dividend yield of 2.9%. Summit State Bank pays an annual dividend of $0.48 per share and has a dividend yield of 6.1%. Opus Bank pays out 25.0% of its earnings in the form of a dividend. Opus Bank has raised its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Opus Bank and Summit State Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opus Bank $326.98 million 1.57 $61.83 million $1.76 8.53
Summit State Bank $32.66 million 1.45 $6.48 million N/A N/A

Opus Bank has higher revenue and earnings than Summit State Bank.

Insider & Institutional Ownership

96.6% of Opus Bank shares are held by institutional investors. Comparatively, 13.5% of Summit State Bank shares are held by institutional investors. 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.

Risk & Volatility

Opus Bank has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Summary

Opus Bank beats Summit State Bank on 11 of the 14 factors compared between the two stocks.

About Opus Bank

Opus Bank provides various banking products, services, and solutions for small and mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals. The company accepts demand deposits, checking accounts, money market accounts, savings accounts, and certificates of deposit. Its loan products include multifamily residential loans, commercial real estate loans, commercial business loans, small business administration loans, and construction loans; and loans and lines for working capital, expansion, acquisitions, consolidation, and transition. The company also offers financial and advisory services related to raising equity capital, targeted acquisition and divestiture strategies, general mergers and acquisitions, debt and equity financing, balance sheet restructuring, valuation, strategy, and performance improvement. In addition, it provides commercial escrow services and facilitates tax-deferred commercial exchanges; and treasury, cash management, and depository solutions. As of January 28, 2019, it operated 47 banking offices, including 28 in California, 16 in the Seattle/Puget Sound region in Washington, 2 in the Phoenix metropolitan area of Arizona, and 1 in Portland, Oregon. The company was formerly known as Bay Cities National Bank. Opus Bank was founded in 1982 and is headquartered in Irvine, California.

About Summit State Bank

Summit State Bank provides various banking products and services to individuals and businesses primarily in Sonoma County, California. It offers personal and business checking, money market, sweep, savings, and demand accounts; time certificates of deposit; and specialized deposit accounts, such as professional, small business packaged, tiered, and Keogh and individual retirement accounts. The company also provides loans, including commercial loans and leases; lines of credit; commercial real estate, small business administration, residential mortgage, and construction loans; and home equity lines of credit, as well as term loans, credit lines to individuals, equipment loans, and business lines of credit. Its loan products also comprise loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs. In addition, the company provides Internet and telephone banking; and other services, including banking by appointment, online banking, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier, safe deposit boxes, night depository facilities, notary, travelers checks, lockbox, and banking by mail. Further, it offers cash management and electronic bill payment services. The company operates through five depository offices located in Santa Rosa, Rohnert Park, Healdsburg, and Petaluma, as well as loan production office in Roseville, California. Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.

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