OptimumBank (NASDAQ:OPHC) & Amerant Bancorp (NASDAQ:AMTB) Critical Analysis

Amerant Bancorp (NASDAQ:AMTB) and OptimumBank (NASDAQ:OPHC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Institutional & Insider Ownership

42.1% of Amerant Bancorp shares are held by institutional investors. Comparatively, 7.4% of OptimumBank shares are held by institutional investors. 13.5% of Amerant Bancorp shares are held by company insiders. Comparatively, 13.9% of OptimumBank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Amerant Bancorp and OptimumBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amerant Bancorp	-8.38%	5.73%	0.45%
OptimumBank	19.62%	14.10%	1.31%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Amerant Bancorp and OptimumBank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amerant Bancorp	0	2	3	0	2.60
OptimumBank	0	1	0	0	2.00

Amerant Bancorp currently has a consensus price target of $26.40, indicating a potential upside of 18.28%. OptimumBank has a consensus price target of $5.25, indicating a potential upside of 11.46%. Given Amerant Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Amerant Bancorp is more favorable than OptimumBank.

Risk & Volatility

Amerant Bancorp has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, OptimumBank has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Earnings & Valuation

This table compares Amerant Bancorp and OptimumBank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amerant Bancorp	$636.08 million	1.48	$32.49 million	($1.48)	-15.08
OptimumBank	$37.20 million	1.28	$6.28 million	$1.32	3.57

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

Summary

Amerant Bancorp beats OptimumBank on 8 of the 14 factors compared between the two stocks.

About Amerant Bancorp

Amerant Bancorp Inc. operates as the bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and internationally. It offers checking, savings, business, and money market accounts; cash management services; and certificates of deposits. The company also provides variable and fixed rate commercial real estate loans; owner-occupied; single-family residential; commercial; and consumer loans and overdrafts, such as automobile, personal, or loans secured by cash or securities and revolving credit card agreements. In addition, it offers trust and estate planning products and services to high-net-worth customers, brokerage and investment advisory services in global capital markets, and wealth management and fiduciary services. Further, the company provides debit and credit cards, night depositories, direct deposits, cashier's checks, safe deposit boxes, letters of credit, and treasury management services, including wire transfer, remote deposit capture, and automated clearinghouse services; derivative instruments; and online and mobile banking, account balances, statements and other documents, online transfers and bill payment, and electronic delivery of customer statements services, as well as automated teller machines, and banking by mobile devices, telephone, and mail. It operates banking centers in Florida and Texas. The company was formerly known as Mercantil Bank Holding Corporation and changed its name to Amerant Bancorp Inc. in June 2019. Amerant Bancorp Inc. was founded in 1979 and is headquartered in Coral Gables, Florida.

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.