Financial Survey: Northwest Bancshares (NASDAQ:NWBI) and Old Point Financial (NASDAQ:OPOF)


Northwest Bancshares (NASDAQ:NWBI – Get Rating) and Old Point Financial (NASDAQ:OPOF – Get Rating) are both small cap finance companies, but which business is superior? We will compare the two companies based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Insider and Institutional Ownership

61.2% of Northwest Bancshares shares are held by institutional investors. By comparison, 32.6% of shares in Old Point Financial are held by institutional investors. 1.0% of Northwest Bancshares shares are held by insiders. By comparison, 16.2% of shares in Old Point Financial are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.

Analyst Notes

This is a breakdown of the current ratings of Northwest Bancshares and Old Point Financial, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
North West Bank 1 3 0 0 1.75
Old Point Financial 0 0 0 0 N / A

Northwest Bancshares currently has a consensus price target of $13.01, indicating a potential upside of 6.52%. Given Northwest Bancshares’ possible higher upside, equity research analysts clearly believe Northwest Bancshares is more favorable than Old Point Financial.

Benefits and evaluation

This chart compares revenue, earnings per share, and valuation of Northwest Bancshares and Old Point Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
North West Bank $561.40 million 2.76 $154.32 million $1.11 11.00
Old Point Financial $57.14 million 2.14 $8.44 million $1.42 16.93

Northwest Bancshares has higher revenue and profits than Old Point Financial. Northwest Bancshares trades at a lower price-to-earnings ratio than Old Point Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 6.6%. Old Point Financial pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Northwest Bancshares pays 72.1% of its earnings as a dividend. Old Point Financial pays 36.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Northwest Bancshares has increased its dividend for 13 consecutive years and Old Point Financial has increased its dividend for 1 consecutive year. Northwest Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and risk

Northwest Bancshares has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.82, indicating that its stock price stock is 18% less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Northwest Bancshares and Old Point Financial.

Net margins Return on equity return on assets
North West Bank 26.19% 9.12% 0.99%
Old Point Financial 13.32% 6.35% 0.57%

Summary

Northwest Bancshares beats Old Point Financial on 10 out of 15 factors compared between the two stocks.

About Northwest Bancshares (Get a rating)

Northwest Bancshares, Inc. operates as the holding company of Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts a variety of deposits, including checks, savings, money market deposits, term certificates, and individual retirement accounts. It also offers lending products including one to four-family residential real estate loans and loans secured by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including auto loans, sales financing loans, unsecured personal loans, credit card loans and loans secured by deposit accounts. The company also provides investment management and trust services. As of December 31, 2021, it operated 170 community banking locations in Pennsylvania, Western New York, Eastern Ohio and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.

About Old Point Financial (Get a rating)

Old Point Financial Corporation operates as a bank holding company for The Old Point National Bank of Phoebus which provides personal, mortgage, and business banking services for individuals and businesses in Virginia. The Company offers deposit products, including interest-bearing transaction accounts, money market deposit accounts, savings accounts, term deposits and demand deposits. It also offers construction, commercial and mortgage real estate loans, such as 1-4 family residential mortgages, multi-family and second lien mortgages and equity lines of credit; and other loans, as well as cash management services. In addition, the Company provides retirement planning, estate planning, financial planning, estate and trust administration, pension plan administration, tax and investment management services; and insurance products and wealth management services. It operates 14 branches in Hampton Roads communities in Hampton, Newport News, Norfolk, Virginia Beach, Chesapeake, Williamsburg/James City County, York County, and Isle of Wight County; a loan origination office in Richmond, Virginia; and a mortgage origination office in Charlotte, North Carolina. The company was founded in 1922 and is based in Hampton, Virginia.



Receive daily news and reviews for Northwest Bancshares – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for Northwest Bancshares and related companies with MarketBeat.com’s free daily email newsletter.

Comments are closed.