OptimumBank (NASDAQ:OPHC – Get Free Report) and Farmers & Merchants Bancorp (NASDAQ:FMAO – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Profitability
This table compares OptimumBank and Farmers & Merchants Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OptimumBank | 19.62% | 14.10% | 1.31% |
| Farmers & Merchants Bancorp | 20.27% | 10.72% | 1.16% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for OptimumBank and Farmers & Merchants Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OptimumBank | 0 | 0 | 3 | 1 | 3.25 |
| Farmers & Merchants Bancorp | 0 | 3 | 1 | 0 | 2.25 |
Volatility & Risk
OptimumBank has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bancorp has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
Valuation and Earnings
This table compares OptimumBank and Farmers & Merchants Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OptimumBank | $58.79 million | 1.89 | $6.28 million | $0.87 | 10.13 |
| Farmers & Merchants Bancorp | $190.68 million | 2.55 | $33.31 million | $2.91 | 12.14 |
Farmers & Merchants Bancorp has higher revenue and earnings than OptimumBank. OptimumBank is trading at a lower price-to-earnings ratio than Farmers & Merchants Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
7.4% of OptimumBank shares are owned by institutional investors. Comparatively, 24.0% of Farmers & Merchants Bancorp shares are owned by institutional investors. 18.7% of OptimumBank shares are owned by company insiders. Comparatively, 7.3% of Farmers & Merchants Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Farmers & Merchants Bancorp beats OptimumBank on 9 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 Farmers & Merchants Bancorp
Farmers & Merchants Bancorp, Inc. is a bank holding company, which engages in the provision of commercial banking, retail banking, and financial services. It includes commercial, agricultural, and residential mortgages as well as consumer and credit card lending activities. The firm also offers checking account services, and savings and time deposit services. The company was founded in 1985 and is headquartered in Archbold, OH.
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