Opus Bank (NYSE: ING) and ING Groep (NYSE:ING) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

Opus Bank has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, ING Groep has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Dividends

Opus Bank pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. ING Groep pays an annual dividend of $0.44 per share and has a dividend yield of 3.3%. Opus Bank pays out 29.5% of its earnings in the form of a dividend. ING Groep pays out 30.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Opus Bank has increased its dividend for 2 consecutive years and ING Groep has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for Opus Bank and ING Groep, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Bank 0 3 0 0 2.00
ING Groep 0 0 3 0 3.00

Opus Bank presently has a consensus price target of $30.75, indicating a potential upside of 7.71%. Given Opus Bank’s higher probable upside, equities research analysts plainly believe Opus Bank is more favorable than ING Groep.

Valuation & Earnings

This table compares Opus Bank and ING Groep’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opus Bank $308.32 million 3.17 $46.89 million $1.49 19.16
ING Groep $20.00 billion 2.59 $6.18 billion $1.44 9.24

ING Groep has higher revenue and earnings than Opus Bank. ING Groep is trading at a lower price-to-earnings ratio than Opus Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Opus Bank and ING Groep’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opus Bank 16.83% 5.96% 0.81%
ING Groep 28.47% 10.28% 0.59%

Institutional and Insider Ownership

98.1% of Opus Bank shares are held by institutional investors. Comparatively, 3.6% of ING Groep shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

ING Groep beats Opus Bank on 8 of the 15 factors compared between the two stocks.

Opus Bank Company Profile

Opus Bank provides various banking products, services, and solutions for small to mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals. It offers demand deposits, checking accounts, money market accounts, savings accounts, and certificates of deposit. The company also provides multifamily residential loans, commercial real estate loans, commercial business loans, small business administration loans, construction loans, and single-family residential and consumer loans; and loans and lines for working capital, expansion, acquisitions, consolidation, and transition. In addition, it offers financial and advisory services related to raising equity capital, targeted acquisition and divestiture strategies, general mergers and acquisitions, debt and equity financing, balance sheet restructuring, valuation, strategy, and performance improvement. Further, the company provides commercial escrow services and facilitates tax-deferred commercial exchanges; financial and advisory services; and treasury, cash management, and depository solutions. As of March 5, 2018, it operated 50 banking offices, including 31 in California, 16 in the Seattle/Puget Sound region in Washington, 2 in the Phoenix metropolitan area of Arizona, and 1 in Portland, Oregon. The company was formerly known as Bay Cities National Bank. Opus Bank was founded in 1982 and is headquartered in Irvine, California.

ING Groep Company Profile

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. It operates in Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking segments. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides mortgage, payment, savings, investment, and secured and unsecured lending products and services. In addition, the company offers specialized lending, corporate finance, and debt and equity markets solutions, as well as working capital, cash management, and trade and treasury services; and financial market, trade finance, overdraft, and foreign exchange transaction services. The company operates in the Netherlands, Belgium, North America, Latin America, Asia, Australia, and rest of Europe. ING Groep N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.

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