Financial Contrast: Old Point Financial (NASDAQ:OPOF) versus Synovus Financial (NYSE:SNV)

Old Point Financial (NASDAQ:OPOFGet Rating) and Synovus Financial (NYSE:SNVGet Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Old Point Financial pays an annual dividend of $0.52 per share and has a dividend yield of 2.1%. Synovus Financial pays an annual dividend of $1.36 per share and has a dividend yield of 3.3%. Old Point Financial pays out 36.6% of its earnings in the form of a dividend. Synovus Financial pays out 28.2% 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. Old Point Financial has increased its dividend for 1 consecutive years and Synovus Financial has increased its dividend for 1 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Old Point Financial 13.32% 6.19% 0.57%
Synovus Financial 35.38% 16.00% 1.32%

Earnings and Valuation

This table compares Old Point Financial and Synovus Financial’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 $57.14 million 2.21 $8.44 million $1.42 17.43
Synovus Financial $2.10 billion 2.82 $760.47 million $4.82 8.46

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

32.6% of Old Point Financial shares are owned by institutional investors. Comparatively, 79.5% of Synovus Financial shares are owned by institutional investors. 16.2% of Old Point Financial shares are owned by insiders. Comparatively, 1.6% of Synovus Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Old Point Financial has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Synovus Financial has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Old Point Financial and Synovus Financial, 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
Synovus Financial 0 0 7 0 3.00

Synovus Financial has a consensus target price of $59.71, indicating a potential upside of 46.47%. Given Synovus Financial’s higher probable upside, analysts clearly believe Synovus Financial is more favorable than Old Point Financial.

Summary

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

About Old Point Financial (Get Rating)

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. 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, commercial, and mortgage loans, such as residential 1-4 family mortgages, multi-family and second mortgages, and equity lines of credit; and other loans, as well as cash management services. In addition, the company offers retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax, and investment management services; and insurance products and wealth management services. It operates 14 branches in the Hampton Roads localities of Hampton, Newport News, Norfolk, Virginia Beach, Chesapeake, Williamsburg/James City County, York County, and Isle of Wight County; a loan production office in Richmond, Virginia; and a mortgage loan origination office in Charlotte, North Carolina. The company was founded in 1922 and is headquartered in Hampton, Virginia.

About Synovus Financial (Get Rating)

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and retail banking products and services. It operates through three segments: Community Banking, Wholesale Banking, and Financial Management Services. The company's commercial banking services include treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services; and bank credit and debit card services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, and financial planning services, as well as provides individual investment advice on equity and other securities. As of December 31, 2020, it operated through 289 branches and 389 ATMs in Alabama, Florida, Georgia, South Carolina, and Tennessee. The company was founded in 1888 and is headquartered in Columbus, Georgia.

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