First Busey (NASDAQ:BUSE) and Ohio Valley Banc (NASDAQ:OVBC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Volatility & Risk

First Busey has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Ohio Valley Banc has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Dividends

First Busey pays an annual dividend of $0.88 per share and has a dividend yield of 5.8%. Ohio Valley Banc pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. First Busey pays out 40.9% of its earnings in the form of a dividend. First Busey has increased its dividend for 6 consecutive years. First Busey is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares First Busey and Ohio Valley Banc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Busey $472.65 million 1.76 $102.95 million $2.15 7.10
Ohio Valley Banc $59.48 million 1.99 $9.91 million N/A N/A

First Busey has higher revenue and earnings than Ohio Valley Banc.

Institutional & Insider Ownership

46.8% of First Busey shares are owned by institutional investors. Comparatively, 19.6% of Ohio Valley Banc shares are owned by institutional investors. 7.5% of First Busey shares are owned by company insiders. Comparatively, 6.7% of Ohio Valley Banc shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares First Busey and Ohio Valley Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Busey 19.57% 8.84% 1.11%
Ohio Valley Banc 15.98% 7.73% 0.94%

Analyst Ratings

This is a summary of recent ratings for First Busey and Ohio Valley Banc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Busey 0 2 1 0 2.33
Ohio Valley Banc 0 0 0 0 N/A

First Busey currently has a consensus price target of $26.67, indicating a potential upside of 74.75%. Given First Busey’s higher possible upside, analysts clearly believe First Busey is more favorable than Ohio Valley Banc.

Summary

First Busey beats Ohio Valley Banc on 12 of the 15 factors compared between the two stocks.

About First Busey

First Busey Corporation operates as the bank holding company for Busey Bank that provides retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. The company operates in three segments: Banking, Remittance Processing, and Wealth Management. It offers customary types of demand and savings deposits; and commercial, agricultural, commercial and residential real estate, and consumer loans, as well as home equity lines of credit. The company also provides money transfer, safe deposit, IRA, Keogh and other fiduciary, ATM and technology-based networks, and online and mobile banking services. In addition, it offers investment management, trust, estate advisory, and financial planning services, as well as business succession planning, and employee retirement planning services; investment strategy consulting and fiduciary services; and security brokerage services. Further, the company provides pay processing solutions, such as walk-in payment processing for payments delivered by customers to retail pay agents; online bill payment solutions for payments made by customers on a billing company's Website; customer service payments for payments accepted over the telephone; direct debit services; electronic concentration of payments delivered by the automated clearing house network; money management software and credit card networks; and lockbox remittance processing of payments delivered by mail. It has 28 banking centers in Illinois; 7 in southwest Florida; and 1 in Indianapolis, Indiana. First Busey Corporation was founded in 1868 and is headquartered in Champaign, Illinois.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit boxes, wire transfers, credit card services, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machine (ATM) services, consumer finance, seasonal tax refund loan services, and commercial property and various liability insurance services, as well as trust services. As of January 29, 2019, it operated 19 offices in Ohio and West Virginia; and Loan Central with 6 consumer finance offices in Ohio. The company owns and operates 37 ATMs, including 20 off-site ATMs. Ohio Valley Banc Corp. was founded in 1872 and is headquartered in Gallipolis, Ohio.

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