Analyzing Byline Bancorp (BY) and Opus Bank (OPB)

Opus Bank (NASDAQ: OPB) and Byline Bancorp (NYSE:BY) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Insider and Institutional Ownership

98.6% of Opus Bank shares are owned by institutional investors. Comparatively, 22.8% of Byline Bancorp shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Opus Bank and Byline Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Bank 0 4 1 0 2.20
Byline Bancorp 0 2 3 0 2.60

Opus Bank currently has a consensus target price of $29.25, suggesting a potential upside of 7.34%. Byline Bancorp has a consensus target price of $24.88, suggesting a potential upside of 9.68%. Given Byline Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Byline Bancorp is more favorable than Opus Bank.

Profitability

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

Net Margins Return on Equity Return on Assets
Opus Bank 15.45% 5.98% 0.78%
Byline Bancorp N/A N/A N/A

Valuation & Earnings

This table compares Opus Bank and Byline Bancorp’s top-line 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 3.03 $11.45 million $1.26 21.63
Byline Bancorp $186.86 million 3.56 $76.50 million $2.61 8.69

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

Opus Bank Company Profile

Opus Bank is a commercial bank. The Company provides banking products, services and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. The Company’s Commercial Bank consists Commercial Banking, Business Banking, Healthcare Banking, Technology Banking, Fiduciary Banking, Institutional Syndications and Commercial Real Estate Banking (CREB), which includes Income Property Banking, its Structured Finance Group and Capital Markets Group. Through its Merchant Bank, the Company offers transaction support, and debt and equity capital to entrepreneurs, small and mid-sized business and middle-market companies. Through its Retail Bank, the Company provides banking solutions for small and mid-sized companies, entrepreneurs, real estate investors, professional and high net worth individuals. Through its Correspondent Bank, the Company offers loan and depository services to other financial institutions.

Byline Bancorp Company Profile

Byline Bancorp, Inc. is a bank holding company. The Company operates through its subsidiary, Byline Bank (the Bank). Byline Bank is a full service commercial bank. The Bank operates through 56 branches in the Chicago metropolitan area. The Bank offers a broad range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors, and to consumers. The Bank also provides small ticket equipment leasing solutions. The Bank’s commercial lending groups include commercial real estate, commercial and industrial, syndications, and commercial deposits and cash management. It offers a variety of deposit products, including non-interest bearing accounts, money market deposit account, savings accounts, negotiable order of withdrawal account accounts and time deposits with maturities ranging from 7 days to 5 years. As of March 31, 2017, the Bank had total gross loans and leases outstanding of 2.1 billion and total deposits of 2.6 billion.

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