Chesapeake Financial Shares (OTCMKTS:CPKF – Get Free Report) and Old Point Financial (NASDAQ:OPOF – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares Chesapeake Financial Shares and Old Point Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Financial Shares||$69.47 million||1.28||$17.63 million||$3.40||5.59|
|Old Point Financial||$61.55 million||1.49||$9.11 million||$2.02||9.02|
Chesapeake Financial Shares has higher revenue and earnings than Old Point Financial. Chesapeake Financial Shares 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.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Financial Shares||21.46%||19.34%||1.20%|
|Old Point Financial||14.11%||10.14%||0.73%|
Institutional & Insider Ownership
3.7% of Chesapeake Financial Shares shares are owned by institutional investors. Comparatively, 39.5% of Old Point Financial shares are owned by institutional investors. 39.5% of Chesapeake Financial Shares shares are owned by company insiders. Comparatively, 16.2% of Old Point Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Chesapeake Financial Shares pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. Chesapeake Financial Shares pays out 17.6% of its earnings in the form of a dividend. Old Point Financial pays out 27.7% 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. Chesapeake Financial Shares is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and recommmendations for Chesapeake Financial Shares and Old Point Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Financial Shares||0||0||0||0||N/A|
|Old Point Financial||0||0||0||0||N/A|
Risk and Volatility
Chesapeake Financial Shares has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.
Chesapeake Financial Shares beats Old Point Financial on 10 of the 14 factors compared between the two stocks.
About Chesapeake Financial Shares
Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. Chesapeake Financial Shares, Inc. was founded in 1900 and is based in Kilmarnock, Virginia.
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. 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, 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. Further, it offers debit cards; online, telephone, text banking; overdraft protection; bill pay; mobile payment; check ordering; and ATM. Old Point Financial Corporation was founded in 1922 and is headquartered in Hampton, Virginia.
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