Old Point Financial (NASDAQ:OPOF – Get Free Report) and KeyCorp (NYSE:KEY – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Profitability
This table compares Old Point Financial and KeyCorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Old Point Financial | 9.60% | 7.51% | 0.54% |
KeyCorp | 7.53% | 8.89% | 0.54% |
Dividends
Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 5.6%. Old Point Financial pays out 36.4% of its earnings in the form of a dividend. KeyCorp pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Old Point Financial has increased its dividend for 1 consecutive years.
Risk and Volatility
Institutional and Insider Ownership
33.4% of Old Point Financial shares are owned by institutional investors. Comparatively, 79.7% of KeyCorp shares are owned by institutional investors. 16.2% of Old Point Financial shares are owned by company insiders. Comparatively, 0.7% of KeyCorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for Old Point Financial and KeyCorp, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Old Point Financial | 0 | 0 | 0 | 0 | N/A |
KeyCorp | 0 | 6 | 12 | 0 | 2.67 |
KeyCorp has a consensus target price of $15.71, indicating a potential upside of 7.13%. Given KeyCorp’s higher possible upside, analysts clearly believe KeyCorp is more favorable than Old Point Financial.
Valuation & Earnings
This table compares Old Point Financial and KeyCorp’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Old Point Financial | $80.50 million | 0.92 | $7.73 million | $1.54 | 9.55 |
KeyCorp | $10.40 billion | 1.31 | $967.00 million | $0.79 | 18.66 |
KeyCorp has higher revenue and earnings than Old Point Financial. Old Point Financial is trading at a lower price-to-earnings ratio than KeyCorp, indicating that it is currently the more affordable of the two stocks.
Summary
KeyCorp beats Old Point Financial on 10 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 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.
About KeyCorp
KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses. It also provides a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services. The company was founded in 1849 and is headquartered in Cleveland, Ohio.
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