Financial Review: Danske Bank A/S (OTCMKTS:DNKEY) and Old Point Financial (NASDAQ:OPOF)

Danske Bank A/S (OTCMKTS:DNKEY) and Old Point Financial (NASDAQ:OPOF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares Danske Bank A/S and Old Point Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank A/S	40.54%	12.53%	0.56%
Old Point Financial	9.60%	7.51%	0.54%

Analyst Recommendations

This is a summary of recent ratings and price targets for Danske Bank A/S and Old Point Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank A/S	0	1	0	0	2.00
Old Point Financial	0	0	0	0	N/A

Institutional and Insider Ownership

33.4% of Old Point Financial shares are owned by institutional investors. 16.3% of Old Point Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Danske Bank A/S and Old Point Financial’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank A/S	$7.61 billion	N/A	$3.09 billion	$1.78	8.24
Old Point Financial	$80.50 million	0.91	$7.73 million	$1.54	9.45

Danske Bank A/S has higher revenue and earnings than Old Point Financial. Danske Bank A/S is trading at a lower price-to-earnings ratio than Old Point Financial, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Danske Bank A/S has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Dividends

Danske Bank A/S pays an annual dividend of $0.78 per share and has a dividend yield of 5.3%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Danske Bank A/S pays out 43.8% of its earnings in the form of a dividend. Old Point Financial pays out 36.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Old Point Financial has raised its dividend for 1 consecutive years.

Summary

Danske Bank A/S beats Old Point Financial on 8 of the 13 factors compared between the two stocks.

About Danske Bank A/S

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.

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 and commercial customers in Virginia. It offers deposit products, including interest-bearing transaction accounts, money market deposit accounts, savings accounts, time deposits, and demand deposits. The company also provides real estate construction, commercial, and mortgage loans, such as residential 1-4 family mortgages, second mortgages, and equity lines of credit; and other loans. In addition, it offers retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax, and investment management services; and insurance products, wealth management, and cash management services. Old Point Financial Corporation was founded in 1922 and is headquartered in Hampton, Virginia.