Head-To-Head Contrast: OptimumBank (NASDAQ:OPHC) and Bank7 (NASDAQ:BSVN)

Bank7 (NASDAQ:BSVN) and OptimumBank (NASDAQ:OPHC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Bank7 and OptimumBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	30.55%	15.96%	2.13%
OptimumBank	19.62%	14.10%	1.31%

Risk and Volatility

Bank7 has a beta of 0.85, meaning that its stock price is 15% 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.

Earnings and Valuation

This table compares Bank7 and OptimumBank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$137.26 million	4.04	$43.07 million	$4.37	13.30
OptimumBank	$58.79 million	1.89	$6.28 million	$0.87	10.10

Bank7 has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than Bank7, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bank7 and OptimumBank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	1	0	4	0	2.60
OptimumBank	0	0	3	1	3.25

Bank7 presently has a consensus price target of $64.33, suggesting a potential upside of 10.65%. OptimumBank has a consensus price target of $6.67, suggesting a potential downside of 24.16%. Given Bank7’s higher probable upside, equities analysts clearly believe Bank7 is more favorable than OptimumBank.

Institutional and Insider Ownership

23.5% of Bank7 shares are owned by institutional investors. Comparatively, 7.4% of OptimumBank shares are owned by institutional investors. 25.7% of Bank7 shares are owned by company insiders. Comparatively, 18.7% of OptimumBank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Bank7 beats OptimumBank on 13 of the 15 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

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.