Old Point Financial (OPOF) & WesBanco (WSBC) Critical Review

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

Risk and Volatility

Old Point Financial has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, WesBanco has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Insider & Institutional Ownership

35.1% of Old Point Financial shares are owned by institutional investors. Comparatively, 59.6% of WesBanco shares are owned by institutional investors. 21.1% of Old Point Financial shares are owned by insiders. Comparatively, 4.1% of WesBanco shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Old Point Financial and WesBanco, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old Point Financial 0 0 0 0 N/A
WesBanco 0 3 1 0 2.25

WesBanco has a consensus price target of $47.00, indicating a potential upside of 14.19%. Given WesBanco’s higher probable upside, analysts plainly believe WesBanco is more favorable than Old Point Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Old Point Financial 1.26% 5.20% 0.50%
WesBanco 24.22% 9.80% 1.37%

Dividends

Old Point Financial pays an annual dividend of $0.44 per share and has a dividend yield of 1.7%. WesBanco pays an annual dividend of $1.16 per share and has a dividend yield of 2.8%. WesBanco pays out 47.3% of its earnings in the form of a dividend. Old Point Financial has increased its dividend for 5 consecutive years and WesBanco has increased its dividend for 7 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Old Point Financial and WesBanco’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Old Point Financial $46.99 million 2.93 -$20,000.00 N/A N/A
WesBanco $421.26 million 4.56 $94.48 million $2.45 16.80

WesBanco has higher revenue and earnings than Old Point Financial.

Summary

WesBanco 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 WesBanco

WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchases of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2017, the company operated through 172 branches and 160 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, as well as 4 loan production offices in West Virginia, Ohio, and western Pennsylvania. WesBanco, Inc. was founded in 1968 and is headquartered in Wheeling, West Virginia.

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