OPBK vs CATY

For growth investors, OP Bancorp (OPBK) is the stronger pick with 8.

2% revenue growth year-over-year, versus -0. 4% for Cathay General Bancorp (CATY). OP Bancorp (OPBK) offers the better valuation at 8. 5x trailing P/E (7. 8x forward), making it the more compelling value choice. Analysts rate OP Bancorp (OPBK) a "Buy" — based on 2 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, OP Bancorp (OPBK) is the cheapest at 8.

5x versus Cathay General Bancorp at 12. 6x. On forward P/E, OP Bancorp is actually cheaper at 7. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: OP Bancorp wins at 0. 51x versus Cathay General Bancorp's 1. 09x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, OP Bancorp (OPBK) delivered a total return of +54.

5%, compared to +51. 2% for Cathay General Bancorp (CATY). Over 10 years, the gap is even starker: OPBK returned +210. 6% versus CATY's +137. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), OP Bancorp (OPBK) is the lower-risk stock at 0.

94β versus Cathay General Bancorp's 1. 04β — meaning CATY is approximately 10% more volatile than OPBK relative to the S&P 500. On balance sheet safety, Cathay General Bancorp (CATY) carries a lower debt/equity ratio of 7% versus 54% for OP Bancorp — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), OP Bancorp (OPBK) is pulling ahead at 8.

2% versus -0. 4% for Cathay General Bancorp (CATY). On earnings-per-share growth, the picture is similar: OP Bancorp grew EPS 23. 7% year-over-year, compared to 14. 9% for Cathay General Bancorp. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cathay General Bancorp (CATY) is the more profitable company, earning 22.

8% net margin versus 15. 4% for OP Bancorp — meaning it keeps 22. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CATY leads at 29. 4% versus 21. 2% for OPBK. At the gross margin level — before operating expenses — CATY leads at 55. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, OP Bancorp (OPBK) is the more undervalued stock at a PEG of 0. 51x versus Cathay General Bancorp's 1. 09x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, OP Bancorp (OPBK) trades at 7. 8x forward P/E versus 10. 4x for Cathay General Bancorp — 2. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OPBK: 16. 5% to $17. 00.

All stocks in this comparison pay dividends.

OP Bancorp (OPBK) offers the highest yield at 3. 3%, versus 2. 4% for Cathay General Bancorp (CATY).

For long-horizon retirement investors, OP Bancorp (OPBK) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

94), 3. 3% yield, +210. 6% 10Y return). Both have compounded well over 10 years (OPBK: +210. 6%, CATY: +137. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.