Fifth Third Bancorp (NASDAQ:FITB – Get Free Report) and OP Bancorp (NASDAQ:OPBK – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Fifth Third Bancorp and OP Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fifth Third Bancorp | 0 | 5 | 17 | 1 | 2.83 |
| OP Bancorp | 0 | 1 | 2 | 1 | 3.00 |
Fifth Third Bancorp currently has a consensus price target of $60.54, indicating a potential upside of 10.21%. OP Bancorp has a consensus price target of $17.75, indicating a potential upside of 14.81%. Given OP Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe OP Bancorp is more favorable than Fifth Third Bancorp.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Fifth Third Bancorp | 15.89% | 12.39% | 1.20% |
| OP Bancorp | 16.87% | 12.59% | 1.08% |
Institutional & Insider Ownership
83.8% of Fifth Third Bancorp shares are held by institutional investors. Comparatively, 53.6% of OP Bancorp shares are held by institutional investors. 0.5% of Fifth Third Bancorp shares are held by company insiders. Comparatively, 9.6% of OP Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Fifth Third Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. OP Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Fifth Third Bancorp pays out 54.6% of its earnings in the form of a dividend. OP Bancorp pays out 29.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fifth Third Bancorp has raised its dividend for 14 consecutive years. OP Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Fifth Third Bancorp has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
Valuation & Earnings
This table compares Fifth Third Bancorp and OP Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fifth Third Bancorp | $10.49 billion | 4.75 | $2.52 billion | $2.93 | 18.75 |
| OP Bancorp | $166.66 million | 1.38 | $25.64 million | $1.93 | 8.01 |
Fifth Third Bancorp has higher revenue and earnings than OP Bancorp. OP Bancorp is trading at a lower price-to-earnings ratio than Fifth Third Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
Fifth Third Bancorp beats OP Bancorp on 10 of the 17 factors compared between the two stocks.
About Fifth Third Bancorp
Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.
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.
Receive News & Ratings for Fifth Third Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fifth Third Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
