Old Point Financial (NASDAQ:OPOF) vs. OceanFirst Financial (NASDAQ:OCFC) Head to Head Contrast

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

Volatility & Risk

OceanFirst Financial has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OceanFirst Financial and Old Point Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OceanFirst Financial	0	4	1	1	2.50
Old Point Financial	0	0	0	0	0.00

OceanFirst Financial presently has a consensus target price of $20.83, suggesting a potential upside of 17.30%. Given OceanFirst Financial’s stronger consensus rating and higher possible upside, analysts clearly believe OceanFirst Financial is more favorable than Old Point Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OceanFirst Financial	14.45%	5.75%	0.72%
Old Point Financial	11.08%	8.56%	0.66%

Dividends

OceanFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. OceanFirst Financial pays out 48.5% of its earnings in the form of a dividend. Old Point Financial pays out 29.8% 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OceanFirst Financial	$379.81 million	2.73	$100.07 million	$1.65	10.76
Old Point Financial	$61.63 million	2.53	$9.51 million	$1.88	16.32

OceanFirst Financial has higher revenue and earnings than Old Point Financial. OceanFirst Financial 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.

Institutional & Insider Ownership

71.0% of OceanFirst Financial shares are held by institutional investors. Comparatively, 33.4% of Old Point Financial shares are held by institutional investors. 5.0% of OceanFirst Financial shares are held by insiders. Comparatively, 21.1% of Old Point Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

OceanFirst Financial beats Old Point Financial on 12 of the 17 factors compared between the two stocks.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.

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.