Old Point Financial (NASDAQ:OPOF) and Huntington Bancshares (NASDAQ:HBAN) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Old Point Financial has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Huntington Bancshares has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Dividends

Old Point Financial pays an annual dividend of $0.48 per share and has a dividend yield of 3.2%. Huntington Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 6.8%. Huntington Bancshares pays out 47.2% of its earnings in the form of a dividend. Old Point Financial has increased its dividend for 1 consecutive years and Huntington Bancshares has increased its dividend for 7 consecutive years. Huntington Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Old Point Financial and Huntington Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old Point Financial 0 0 0 0 N/A
Huntington Bancshares 1 9 5 0 2.27

Huntington Bancshares has a consensus price target of $10.95, indicating a potential upside of 23.47%. Given Huntington Bancshares’ higher probable upside, analysts plainly believe Huntington Bancshares is more favorable than Old Point Financial.

Earnings & Valuation

This table compares Old Point Financial and Huntington Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Old Point Financial $54.32 million 1.43 $7.86 million N/A N/A
Huntington Bancshares $5.66 billion 1.59 $1.41 billion $1.27 6.98

Huntington Bancshares has higher revenue and earnings than Old Point Financial.

Profitability

This table compares Old Point Financial and Huntington Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Old Point Financial 13.05% 6.49% 0.67%
Huntington Bancshares 19.65% 10.40% 1.00%

Institutional and Insider Ownership

34.4% of Old Point Financial shares are owned by institutional investors. Comparatively, 74.0% of Huntington Bancshares shares are owned by institutional investors. 20.4% of Old Point Financial shares are owned by insiders. Comparatively, 0.7% of Huntington Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Huntington Bancshares beats Old Point Financial on 12 of the 15 factors compared between the two stocks.

About Old Point Financial

Old Point Financial Corporation operates as the bank holding company for The Old Point National Bank of Phoebus that provides consumer, mortgage, and business banking services for individual, retail, and commercial customers. The company offers deposit products, including interest-bearing transaction accounts, money market deposit accounts, savings accounts, time deposits, and demand deposits. It also provides real estate construction and real estate mortgage loans, such as residential 1-4 family mortgages, commercial real estate loans, second mortgages, and equity lines of credit; and other loans, as well as cash management services. In addition, the company, through its other subsidiary, Old Point Trust & Financial Services, N.A., provides wealth management services, which include retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax services, and investment management services. As of December 31, 2017, it operated 18 branches in the Hampton Roads localities of Chesapeake, Hampton, Isle of Wight County, Newport News, Norfolk, Virginia Beach, Williamsburg/James City County, and York County. The company was founded in 1922 and is headquartered in Hampton, Virginia.

About Huntington Bancshares

Huntington Bancshares Incorporated operates as a holding company for The Huntington National Bank that provides commercial, small business, consumer, and mortgage banking services. The company operates through four business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group (RBHPCG). The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, mortgage loans, credit cards, and small business loans, as well as investment products. It also provides insurance, interest rate risk protection, foreign exchange, and treasury management services, as well as online, mobile, and telephone banking services. The Commercial Banking segment offers banking solutions and asset finance services; corporate risk management services; institutional sales, trading, and underwriting services; institutional corporate banking services; treasury management services; and other financing solutions, as well as lends real estate developers, REITs, and other customers. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment provides deposits, lending, banking, wealth management, investment and portfolio management, fiduciary administration, trust, retirement plan, and institutional and mutual fund custody services. As of December 31, 2018, the company operated through 944 branches located in Ohio, Michigan, Pennsylvania, Indiana, Illinois, Wisconsin, West Virginia, and Kentucky; and 10 private client group offices. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.

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