Head to Head Review: Opus Bank (NASDAQ:OPB) & Republic First Bancorp (FRBK)

Opus Bank (NASDAQ: OPB) and Republic First Bancorp (NASDAQ:FRBK) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Risk and Volatility

Opus Bank has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Republic First Bancorp has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

98.5% of Opus Bank shares are held by institutional investors. Comparatively, 54.3% of Republic First Bancorp shares are held by institutional investors. 12.2% of Republic First Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Opus Bank and Republic First Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opus Bank $336.69 million 2.97 $11.45 million $0.68 42.94
Republic First Bancorp $69.35 million 7.23 $4.94 million $0.14 62.86

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

Analyst Ratings

This is a breakdown of recent recommendations for Opus Bank and Republic First Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Bank 0 3 2 0 2.40
Republic First Bancorp 0 2 0 0 2.00

Opus Bank currently has a consensus price target of $29.25, suggesting a potential upside of 0.17%. Republic First Bancorp has a consensus price target of $9.00, suggesting a potential upside of 2.27%. Given Republic First Bancorp’s higher possible upside, analysts plainly believe Republic First Bancorp is more favorable than Opus Bank.

Profitability

This table compares Opus Bank and Republic First Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opus Bank 8.30% 3.11% 0.39%
Republic First Bancorp 8.97% 3.48% 0.38%

Summary

Opus Bank beats Republic First Bancorp on 8 of the 14 factors compared between the two stocks.

About Opus Bank

Opus Bank is a commercial bank. The Company provides banking products, services and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. The Company’s Commercial Bank consists Commercial Banking, Business Banking, Healthcare Banking, Technology Banking, Fiduciary Banking, Institutional Syndications and Commercial Real Estate Banking (CREB), which includes Income Property Banking, its Structured Finance Group and Capital Markets Group. Through its Merchant Bank, the Company offers transaction support, and debt and equity capital to entrepreneurs, small and mid-sized business and middle-market companies. Through its Retail Bank, the Company provides banking solutions for small and mid-sized companies, entrepreneurs, real estate investors, professional and high net worth individuals. Through its Correspondent Bank, the Company offers loan and depository services to other financial institutions.

About Republic First Bancorp

Republic First Bancorp, Inc. is a holding company for Republic First Bank (Republic or the Bank), which does business under the name Republic Bank. The Company’s community banking segment encompasses the commercial loan and deposit activities of Republic, as well as consumer loan products in the areas surrounding its store network. The Company offers a range of banking products and services, including consumer and commercial deposit accounts, checking accounts, interest-bearing demand accounts, money market accounts, certificates of deposit, savings accounts, sweep accounts, lockbox services and individual retirement accounts (and other traditional banking services), secured and unsecured commercial loans, real estate loans, construction and land development loans, automobile loans, home improvement loans, mortgages, home equity and overdraft lines of credit, and other products. The Bank offers a range of credit and depository banking services.

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