Head to Head Contrast: OP Bancorp (NASDAQ:OPBK) & BM Technologies (NYSE:BMTX)

BM Technologies (NYSE:BMTX) and OP Bancorp (NASDAQ:OPBK) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Earnings and Valuation

This table compares BM Technologies and OP Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BM Technologies	$57.66 million	1.03	-$17.33 million	($1.11)	-4.41
OP Bancorp	$80.60 million	2.68	$23.92 million	$1.40	10.44

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

Institutional and Insider Ownership

20.1% of BM Technologies shares are held by institutional investors. Comparatively, 53.6% of OP Bancorp shares are held by institutional investors. 8.4% of BM Technologies shares are held by company insiders. Comparatively, 21.3% of OP Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares BM Technologies and OP Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BM Technologies	-22.62%	-47.64%	-26.42%
OP Bancorp	14.18%	10.81%	0.94%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BM Technologies and OP Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BM Technologies	0	2	2	0	2.50
OP Bancorp	0	1	0	0	2.00

BM Technologies currently has a consensus target price of $6.70, indicating a potential upside of 37.01%. OP Bancorp has a consensus target price of $13.00, indicating a potential downside of 11.02%. Given BM Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe BM Technologies is more favorable than OP Bancorp.

Volatility and Risk

BM Technologies has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Summary

OP Bancorp beats BM Technologies on 11 of the 14 factors compared between the two stocks.

About BM Technologies

BM Technologies, Inc., a financial technology company, facilitates deposits and banking services between a customer and its partner banks in the United States. It offers digital banking and disbursement services to consumers and students through a full service fintech banking platform. The company was formerly known as BankMobile Technologies, Inc. and changed its name to BM Technologies, Inc. in January 2021. BM Technologies, Inc. was founded in 2015 and is headquartered in Wayne, Pennsylvania.

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.