Head-To-Head Review: Old Point Financial (NASDAQ:OPOF) vs. Westamerica Bancorporation (NASDAQ:WABC)

Westamerica Bancorporation (NASDAQ:WABCGet Free Report) and Old Point Financial (NASDAQ:OPOFGet Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Westamerica Bancorporation and Old Point Financial”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westamerica Bancorporation $313.47 million 4.25 $161.77 million $5.92 8.44
Old Point Financial $80.50 million 1.11 $7.73 million $1.26 14.00

Westamerica Bancorporation has higher revenue and earnings than Old Point Financial. Westamerica Bancorporation 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.

Insider and Institutional Ownership

81.9% of Westamerica Bancorporation shares are owned by institutional investors. Comparatively, 33.4% of Old Point Financial shares are owned by institutional investors. 4.4% of Westamerica Bancorporation shares are owned by company insiders. Comparatively, 21.1% of Old Point Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Westamerica Bancorporation and Old Point Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westamerica Bancorporation 0 3 0 0 2.00
Old Point Financial 0 0 0 0 N/A

Westamerica Bancorporation presently has a consensus target price of $57.00, indicating a potential upside of 14.05%. Given Westamerica Bancorporation’s higher probable upside, equities analysts clearly believe Westamerica Bancorporation is more favorable than Old Point Financial.

Dividends

Westamerica Bancorporation pays an annual dividend of $1.76 per share and has a dividend yield of 3.5%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. Westamerica Bancorporation pays out 29.7% of its earnings in the form of a dividend. Old Point Financial pays out 44.4% 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. Westamerica Bancorporation has raised its dividend for 32 consecutive years and Old Point Financial has raised its dividend for 3 consecutive years. Westamerica Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Westamerica Bancorporation has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Westamerica Bancorporation 47.12% 20.17% 2.38%
Old Point Financial 8.41% 6.69% 0.49%

Summary

Westamerica Bancorporation beats Old Point Financial on 13 of the 15 factors compared between the two stocks.

About Westamerica Bancorporation

(Get Free Report)

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.

About Old Point Financial

(Get Free Report)

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.

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