Analyzing Old Point Financial (NASDAQ:OPOF) & Pinnacle Financial Partners (NASDAQ:PNFP)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Old Point Financial and Pinnacle Financial Partners, 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
Pinnacle Financial Partners 1 0 5 0 2.67

Pinnacle Financial Partners has a consensus target price of $95.33, suggesting a potential upside of 33.15%. Given Pinnacle Financial Partners’ higher probable upside, analysts plainly believe Pinnacle Financial Partners is more favorable than Old Point Financial.

Risk and Volatility

Old Point Financial has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Pinnacle Financial Partners has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

32.6% of Old Point Financial shares are owned by institutional investors. Comparatively, 80.4% of Pinnacle Financial Partners shares are owned by institutional investors. 16.2% of Old Point Financial shares are owned by insiders. Comparatively, 2.1% of Pinnacle Financial Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Old Point Financial and Pinnacle Financial Partners’ 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 2.16 $8.44 million $1.42 17.08
Pinnacle Financial Partners $1.43 billion 3.83 $527.32 million $6.80 10.53

Pinnacle Financial Partners has higher revenue and earnings than Old Point Financial. Pinnacle Financial Partners 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Old Point Financial 13.32% 6.35% 0.57%
Pinnacle Financial Partners 36.76% 10.59% 1.42%

Dividends

Old Point Financial pays an annual dividend of $0.52 per share and has a dividend yield of 2.1%. Pinnacle Financial Partners pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Old Point Financial pays out 36.6% of its earnings in the form of a dividend. Pinnacle Financial Partners pays out 12.9% 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 raised its dividend for 1 consecutive years and Pinnacle Financial Partners has raised its dividend for 2 consecutive years.

Summary

Pinnacle Financial Partners beats Old Point Financial on 13 of the 16 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 Pinnacle Financial Partners

(Get Rating)

Pinnacle Financial Partners, Inc., together with its subsidiaries, operates as the bank holding company for Pinnacle Bank that provides various banking products and services in the United States. The company accepts various deposits, including savings, checking, noninterest-bearing and interest-bearing checking, money market, and certificate of deposit accounts. Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit, as well as provides credit cards for consumers and businesses. The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody. In addition, it provides insurance agency services primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, and other middle-market advisory services. Further, the company offers treasury management, telephone and online banking, mobile banking, debit cards, direct deposit and remote deposit capture, mobile deposit option, automated teller machine, and cash management services. It serves individuals, small to medium-sized businesses, and professional entities. As of December 31, 2020, the company operated 114 offices, including 48 in Tennessee, 36 in North Carolina, 20 in South Carolina, 9 in Virginia, and 1 in Georgia. Pinnacle Financial Partners, Inc. was incorporated in 2000 and is headquartered in Nashville, Tennessee.

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