Analyzing Old Point Financial (NASDAQ:OPOF) & Lifestore Financial Group (OTCMKTS:LSFG)

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

Insider and Institutional Ownership

33.4% of Old Point Financial shares are owned by institutional investors. 16.2% of Old Point Financial shares are owned by company insiders. Comparatively, 12.2% of Lifestore Financial Group shares are owned by company 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.

Valuation and Earnings

This table compares Old Point Financial and Lifestore Financial Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Point Financial	$80.50 million	0.93	$7.73 million	$1.54	9.67
Lifestore Financial Group	N/A	N/A	N/A	N/A	N/A

Old Point Financial has higher revenue and earnings than Lifestore Financial Group.

Dividends

Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Lifestore Financial Group pays an annual dividend of $0.55 per share and has a dividend yield of 1.4%. Old Point Financial pays out 36.4% of its earnings in the form of a dividend. Old Point Financial has increased its dividend for 1 consecutive years. Old Point Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Old Point Financial and Lifestore Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Point Financial	0	0	0	0	N/A
Lifestore Financial Group	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Point Financial	9.60%	7.51%	0.54%
Lifestore Financial Group	N/A	N/A	N/A

Volatility and Risk

Old Point Financial has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Lifestore Financial Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

Old Point Financial beats Lifestore Financial Group on 8 of the 10 factors compared between the two stocks.

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.

About Lifestore Financial Group

LifeStore Financial Group, Inc. operates as a federally chartered thrift holding company for LifeStore Bank that provides personal and business banking products and services in North Carolina. The company offers checking, savings, and money market accounts, as well as certificates of deposit; mortgage loans, automobile loans, home equity lines of credit, commercial real estate loans, commercial construction loans, investment property loans, equipment loans, working capital loans/lines of credit, and small business administration loans; and credit cards. It also provides insurance agency products and services; investment and cash management services; and online and mobile banking services. The company was formerly known as AF Financial Group and changed its name to LifeStore Financial Group, Inc. in September 2009. LifeStore Financial Group, Inc. was founded in 1939 and is headquartered in West Jefferson, North Carolina. Lifestore Financial Group, Inc. operates as a subsidiary of AsheCo MHC, Inc.