Affinity Bancshares (NASDAQ:AFBI) and OP Bancorp (NASDAQ:OPBK) Head to Head Survey

OP Bancorp (NASDAQ:OPBK) and Affinity Bancshares (NASDAQ:AFBI) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for OP Bancorp and Affinity Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OP Bancorp	0	1	2	1	3.00
Affinity Bancshares	0	0	1	0	3.00

OP Bancorp currently has a consensus target price of $17.75, suggesting a potential upside of 14.81%. Given OP Bancorp’s higher probable upside, research analysts plainly believe OP Bancorp is more favorable than Affinity Bancshares.

Profitability

This table compares OP Bancorp and Affinity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OP Bancorp	16.87%	12.59%	1.08%
Affinity Bancshares	16.50%	7.51%	1.04%

Insider and Institutional Ownership

53.6% of OP Bancorp shares are owned by institutional investors. Comparatively, 39.3% of Affinity Bancshares shares are owned by institutional investors. 9.6% of OP Bancorp shares are owned by company insiders. Comparatively, 12.3% of Affinity Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares OP Bancorp and Affinity Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OP Bancorp	$166.66 million	1.38	$25.64 million	$1.93	8.01
Affinity Bancshares	$33.36 million	4.20	$8.33 million	$1.37	16.79

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

Volatility and Risk

OP Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Affinity Bancshares has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Summary

OP Bancorp beats Affinity Bancshares on 11 of the 14 factors compared between the two stocks.

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.

About Affinity Bancshares

Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.