Customers Bancorp (NYSE:CUBI) and Old Point Financial (NASDAQ:OPOF) Head to Head Review

Old Point Financial (NASDAQ:OPOF) and Customers Bancorp (NYSE:CUBI) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Volatility and Risk

Old Point Financial has a beta of -0.32, meaning that its stock price is 132% less volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Old Point Financial and Customers Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Point Financial	0	0	0	0	0.00
Customers Bancorp	0	4	3	1	2.63

Customers Bancorp has a consensus price target of $69.25, suggesting a potential upside of 10.57%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Customers Bancorp is more favorable than Old Point Financial.

Valuation and Earnings

This table compares Old Point Financial and Customers Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Point Financial	$85.82 million	2.40	$9.51 million	$1.70	23.68
Customers Bancorp	$1.39 billion	1.43	$181.47 million	$4.04	15.50

Customers Bancorp has higher revenue and earnings than Old Point Financial. Customers Bancorp 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

33.4% of Old Point Financial shares are owned by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are owned by institutional investors. 21.1% of Old Point Financial shares are owned by insiders. Comparatively, 8.7% of Customers Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Point Financial	10.12%	8.20%	0.65%
Customers Bancorp	10.77%	11.98%	0.93%

Summary

Customers Bancorp beats Old Point Financial on 12 of the 15 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 Customers Bancorp

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. The company provides deposit banking products, which includes commercial and consumer checking, non-interest-bearing and interest-bearing demand, MMDA, savings, and time deposit accounts. Its lending business offers commercial and industrial, commercial real estate, and multifamily and residential mortgage loans; SBA lending and financing; specialty lending includes fund finance, real estate specialty finance, technology and venture, and healthcare and financial institutions group; commercial loans to mortgage companies, and commercial equipment financing; and fund finance, such as variable rate loans secured by collateral pools to private debt funds; and cash management services. In addition, the company provides digital banking including Banking-as-a-Service to fintech companies, payments and treasury services to businesses, and consumer loans through fintech companies and the TassatPay, a blockchain-based instant B2B payments platform which offers instant payments including over-the-counter desks, exchanges, liquidity providers, market makers, funds, and other B2B verticals. Further, it offers mobile phone and internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, positive pay, and cash management services, such as account reconciliation, collections, and sweep accounts. The company was incorporated in 2010 and is headquartered in West Reading, Pennsylvania.