Analyzing Old Point Financial (NASDAQ:OPOF) & Danske Bank A/S (OTCMKTS:DNKEY)

Danske Bank A/S (OTCMKTS:DNKEY) and Old Point Financial (NASDAQ:OPOF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Volatility and Risk

Danske Bank A/S has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Danske Bank A/S and Old Point Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danske Bank A/S	0	1	0	0	2.00
Old Point Financial	0	0	0	0	N/A

Insider and Institutional Ownership

33.4% of Old Point Financial shares are held by institutional investors. 16.2% of Old Point Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Danske Bank A/S pays an annual dividend of $0.78 per share and has a dividend yield of 5.2%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Danske Bank A/S pays out 43.8% of its earnings in the form of a dividend. Old Point Financial pays out 36.4% 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.

Valuation & Earnings

This table compares Danske Bank A/S and Old Point Financial’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danske Bank A/S	$7.61 billion	N/A	$3.09 billion	$1.78	8.43
Old Point Financial	$80.50 million	0.93	$7.73 million	$1.54	9.67

Danske Bank A/S has higher revenue and earnings than Old Point Financial. Danske Bank A/S 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 Danske Bank A/S and Old Point Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danske Bank A/S	40.54%	12.53%	0.56%
Old Point Financial	9.60%	7.51%	0.54%

Summary

Danske Bank A/S beats Old Point Financial on 8 of the 13 factors compared between the two stocks.

About Danske Bank A/S

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities. It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion. In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services. It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. The company was founded in 1871 and is headquartered in Copenhagen, Denmark.

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.