Ohio Valley Banc (NASDAQ:OVBC) versus Peoples Financial (OTCMKTS:PFBX) Critical Survey

Volatility and Risk

Peoples Financial has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Ohio Valley Banc has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500.

Profitability

This table compares Peoples Financial and Ohio Valley Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Financial	54.68%	28.21%	2.58%
Ohio Valley Banc	13.66%	7.97%	0.83%

Dividends

Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Ohio Valley Banc pays an annual dividend of $0.88 per share and has a dividend yield of 3.3%. Peoples Financial pays out 7.7% of its earnings in the form of a dividend. Ohio Valley Banc pays out 35.6% 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.

Valuation & Earnings

This table compares Peoples Financial and Ohio Valley Banc”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Financial	$39.52 million	2.12	$9.17 million	$4.70	3.83
Ohio Valley Banc	$74.49 million	1.70	$12.63 million	$2.47	10.88

Ohio Valley Banc has higher revenue and earnings than Peoples Financial. Peoples Financial is trading at a lower price-to-earnings ratio than Ohio Valley Banc, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

32.8% of Peoples Financial shares are owned by institutional investors. Comparatively, 22.1% of Ohio Valley Banc shares are owned by institutional investors. 28.1% of Peoples Financial shares are owned by company insiders. Comparatively, 5.3% of Ohio Valley Banc shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Peoples Financial beats Ohio Valley Banc on 9 of the 13 factors compared between the two stocks.

About Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.