OptimumBank (NASDAQ:OPHC – Get Free Report) and SmartFinancial (NASDAQ:SMBK – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Profitability
This table compares OptimumBank and SmartFinancial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OptimumBank | 18.24% | 12.66% | 1.16% |
| SmartFinancial | 9.93% | 6.55% | 0.62% |
Analyst Recommendations
This is a breakdown of current recommendations for OptimumBank and SmartFinancial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OptimumBank | 0 | 1 | 0 | 0 | 2.00 |
| SmartFinancial | 0 | 3 | 1 | 1 | 2.60 |
Insider and Institutional Ownership
7.4% of OptimumBank shares are owned by institutional investors. Comparatively, 58.8% of SmartFinancial shares are owned by institutional investors. 13.9% of OptimumBank shares are owned by company insiders. Comparatively, 7.7% of SmartFinancial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
OptimumBank has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Earnings and Valuation
This table compares OptimumBank and SmartFinancial’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OptimumBank | $33.95 million | 1.28 | $6.28 million | $1.02 | 4.42 |
| SmartFinancial | $151.31 million | 3.16 | $28.59 million | $1.56 | 17.95 |
SmartFinancial has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.
Summary
SmartFinancial beats OptimumBank on 10 of the 15 factors compared between the two stocks.
About OptimumBank
OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, and NOW accounts, as well as time deposits, wire transfers, ACH services, and certificates of deposit. The company also offers residential and commercial real estate, multi-family real estate, land and construction loans; commercial loans are generally used for working capital purposes or for acquiring equipment, inventory, and furniture; and consumer loans for various purposes, including purchases of automobiles, recreational vehicles, boats, home improvements, lines of credit, personal, and deposit account collateralized loans. In addition, it provides Visa debit and ATM cards; cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. The company was founded in 2000 and is based in Fort Lauderdale, Florida.
About SmartFinancial
SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.
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