Head to Head Survey: First Resource Bancorp (OTCMKTS:FRSB) & Hope Bancorp (NASDAQ:HOPE)

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

Valuation and Earnings

This table compares Hope Bancorp and First Resource Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hope Bancorp	$1.09 billion	1.18	$133.67 million	$1.00	10.73
First Resource Bancorp	$30.38 million	1.40	$5.93 million	$1.94	7.09

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

Analyst Recommendations

This is a summary of current ratings and target prices for Hope Bancorp and First Resource Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hope Bancorp	0	2	1	0	2.33
First Resource Bancorp	0	0	0	0	N/A

Hope Bancorp currently has a consensus target price of $11.83, suggesting a potential upside of 10.28%. Given Hope Bancorp’s higher probable upside, equities analysts clearly believe Hope Bancorp is more favorable than First Resource Bancorp.

Institutional & Insider Ownership

84.0% of Hope Bancorp shares are owned by institutional investors. 5.3% of Hope Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hope Bancorp	10.80%	6.43%	0.69%
First Resource Bancorp	18.40%	N/A	N/A

Risk and Volatility

Hope Bancorp has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, First Resource Bancorp has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Summary

Hope Bancorp beats First Resource Bancorp on 10 of the 13 factors compared between the two stocks.

About Hope Bancorp

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides retail and commercial banking services for businesses and individuals in the United States. It accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. The company also offers loans comprising commercial and industrial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance, other business-related financing, and loans syndication services; commercial real estate loans; residential mortgage loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, automobile, credit card, and personal loans. In addition, it provides internet banking and bill-pay, remote deposit capture, lock box, and ACH origination services; treasury management services; foreign currency exchange transactions; interest rate contracts and wealth management services; automated teller machine services; and engages in investment activities. Hope Bancorp, Inc. was founded in 1986 and is headquartered in Los Angeles, California.

About First Resource Bancorp

First Resource Bancorp, Inc. operates as the bank holding for First Resource Bank that provides personal and business banking products and services to businesses and families primarily in the southeastern area of Pennsylvania. The company's offers savings, checking, and money market accounts, as well as certificate deposit account registry services, insured cash sweeps, certificates of deposit, and IRAs. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity lines of credit, fixed payment home equity loans, residential construction loans, land loans, overdraft protection, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides personal financial statements; credit and debit cards; digital banking services; and cash management, positive pay, ACH origination, sweep/transfer of funds, ATM, over the counter checks, bill payment, wire transfer, signature guarantee/notary, safe deposit box, drive-up banking, night depository, foreign currency exchange, cashier's check, e-statements, and stop payments, as well as telephone, messaging and text, online, and mobile banking services. First Resource Bancorp, Inc. was founded in 2005 and is based in Exton, Pennsylvania.