Financial Comparison: OptimumBank (NASDAQ:OPHC) and Shinhan Financial Group (NASDAQ:SHG)

OptimumBank (NASDAQ:OPHC) and Shinhan Financial Group (NYSE:SHG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Earnings and Valuation

This table compares OptimumBank and Shinhan Financial Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OptimumBank $4.38 million 1.09 $800,000.00 N/A N/A
Shinhan Financial Group $15.19 billion 0.73 $2.72 billion $5.96 3.97

Shinhan Financial Group has higher revenue and earnings than OptimumBank.

Profitability

This table compares OptimumBank and Shinhan Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OptimumBank -29.49% -29.08% -1.35%
Shinhan Financial Group 18.43% 8.62% 0.66%

Analyst Ratings

This is a summary of current recommendations and price targets for OptimumBank and Shinhan Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OptimumBank 0 0 0 0 N/A
Shinhan Financial Group 1 2 0 0 1.67

Insider and Institutional Ownership

2.6% of Shinhan Financial Group shares are held by institutional investors. 13.7% of OptimumBank shares are held by company insiders. Comparatively, 1.0% of Shinhan Financial Group 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.

Volatility and Risk

OptimumBank has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

Shinhan Financial Group beats OptimumBank on 7 of the 10 factors compared between the two stocks.

About OptimumBank

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides a range of consumer and commercial banking services to individuals and businesses. The company accepts demand interest-bearing and noninterest-bearing, savings, money market, NOW, and time deposit accounts, as well as certificates of deposit; and offers residential and commercial real estate, commercial, and consumer loans, as well as lending lines for working capital needs. It also provides debit and ATM cards; investment, cash management, and notary and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, drive-in tellers, and banking by mail, as well as Internet banking services. In addition, the company engages in holding, managing, and disposing foreclosed real estate. It operates through three banking offices located in Broward County, Florida. OptimumBank Holdings, Inc. was founded in 2000 and is based in Fort Lauderdale, Florida.

About Shinhan Financial Group

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through five segments: Banking, Credit Cards, Securities, Life Insurance, and Others. It offers retail banking services, including mortgage and home equity, and retail lending; demand, savings, and fixed deposit-taking; checking accounts; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting, and securitization; derivatives services comprising securities and derivative products, and foreign exchange trading; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. As of December 31, 2017, it operated a network of 865 service centers; 6,076 ATMs; 9 cash dispensers; and 35 digital kiosks. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.

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