First Northern Community Bancorp (OTCMKTS:FNRN) vs. Hope Bancorp (NASDAQ:HOPE) Financial Survey

First Northern Community Bancorp (OTCMKTS:FNRN) and Hope Bancorp (NASDAQ:HOPE) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Risk & Volatility

First Northern Community Bancorp has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Hope Bancorp has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares First Northern Community Bancorp and Hope Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Northern Community Bancorp	24.07%	10.79%	1.12%
Hope Bancorp	5.81%	5.09%	0.62%

Valuation and Earnings

This table compares First Northern Community Bancorp and Hope Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northern Community Bancorp	$84.67 million	2.60	$21.10 million	$1.32	10.68
Hope Bancorp	$967.63 million	1.66	$61.59 million	$0.46	27.27

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

Analyst Ratings

This is a summary of recent recommendations for First Northern Community Bancorp and Hope Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northern Community Bancorp	0	0	0	0	0.00
Hope Bancorp	1	2	1	0	2.00

Hope Bancorp has a consensus target price of $13.75, indicating a potential upside of 9.61%. Given Hope Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Hope Bancorp is more favorable than First Northern Community Bancorp.

Insider & Institutional Ownership

17.9% of First Northern Community Bancorp shares are held by institutional investors. Comparatively, 84.0% of Hope Bancorp shares are held by institutional investors. 11.8% of First Northern Community Bancorp shares are held by insiders. Comparatively, 5.2% of Hope Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Hope Bancorp beats First Northern Community Bancorp on 8 of the 14 factors compared between the two stocks.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small and medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market deposit accounts, and time deposits. It also offers commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. In addition, the company provides debit and credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. Further, it offers cashier's checks, safe deposit boxes, and other customary banking services. The company operates branches located in the cities of Auburn, Colusa, Davis, Dixon, Fairfield, Orland, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, Willows, and Woodland; satellite banking office inside a retirement community in the city of Davis; residential mortgage loan office in Davis; and commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

About Hope Bancorp

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans. In addition, it provides internet banking and bill-pay, remote deposit capture, lock box, and ACH origination services; treasury management services; foreign currency exchange transactions; interest rate contracts and wealth management services; automated teller machine services; and engages in investment activities. Hope Bancorp, Inc. was founded in 1986 and is headquartered in Los Angeles, California.