Hope Bancorp (NASDAQ:HOPE) and BNCCORP (OTCMKTS:BNCC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Hope Bancorp and BNCCORP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hope Bancorp 0 2 0 0 2.00
BNCCORP 0 0 0 0 N/A

Hope Bancorp currently has a consensus target price of $16.00, indicating a potential upside of 17.65%. Given Hope Bancorp’s higher probable upside, analysts plainly believe Hope Bancorp is more favorable than BNCCORP.

Risk & Volatility

Hope Bancorp has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, BNCCORP has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Dividends

Hope Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.1%. BNCCORP does not pay a dividend. Hope Bancorp pays out 38.9% of its earnings in the form of a dividend. Hope Bancorp has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

86.8% of Hope Bancorp shares are owned by institutional investors. Comparatively, 0.1% of BNCCORP shares are owned by institutional investors. 5.6% of Hope Bancorp shares are owned by company insiders. Comparatively, 28.4% of BNCCORP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Hope Bancorp and BNCCORP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hope Bancorp 23.98% 9.12% 1.15%
BNCCORP 11.52% 8.15% 0.65%

Valuation and Earnings

This table compares Hope Bancorp and BNCCORP’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hope Bancorp $710.35 million 2.43 $189.59 million $1.44 9.44
BNCCORP $53.49 million 1.88 $6.84 million N/A N/A

Hope Bancorp has higher revenue and earnings than BNCCORP.

Summary

Hope Bancorp beats BNCCORP on 11 of the 14 factors compared between the two stocks.

Hope Bancorp Company Profile

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services to small and medium-sized businesses and individuals in the United States. The company offers personal and business checking, money market, savings, time deposit, and individual retirement accounts. It also provides commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; commercial real estate loans; small business administration (SBA) loans; and consumer loans, such as auto, home equity, single-family mortgage, and signature loans. In addition, the company offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; commercial equipment lease financing; and warehouse lines of credit to mortgage loan originators. Further, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking; debit and credit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; and Internet banking and bill-pay services, as well as operates automated teller machines. As of February 27, 2019, the company operated 63 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia, and Alabama; SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California, and Houston; a commercial loan production office in Northern California and Seattle; residential mortgage loan production offices in California; and a representative office in Seoul, Korea. The company was formerly known as BBCN Bancorp, Inc. and changed its name to Hope Bancorp, Inc. in August 2016. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.

BNCCORP Company Profile

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. It offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. The company also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, it offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory; and professional services, such as tax, accounting, payroll, and business planning. The company offers community banking and wealth management services through 15 locations in Arizona, Minnesota, and North Dakota; and mortgage banking services through 13 locations in Arizona, Minnesota, North Dakota, Illinois, Kansas, and Missouri. BNCCORP, Inc. was founded in 1987 and is headquartered in Bismarck, North Dakota.

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