Head-To-Head Survey: First Financial Bancorp. (NASDAQ:FFBC) vs. Old Point Financial (NASDAQ:OPOF)

Old Point Financial (NASDAQ:OPOF) and First Financial Bancorp. (NASDAQ:FFBC) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Dividends

Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. First Financial Bancorp. pays an annual dividend of $0.92 per share and has a dividend yield of 3.5%. Old Point Financial pays out 44.4% of its earnings in the form of a dividend. First Financial Bancorp. pays out 37.1% 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 3 consecutive years. First Financial Bancorp. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

33.4% of Old Point Financial shares are owned by institutional investors. Comparatively, 77.2% of First Financial Bancorp. shares are owned by institutional investors. 21.1% of Old Point Financial shares are owned by insiders. Comparatively, 2.0% of First Financial Bancorp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Point Financial	7.71%	6.11%	0.44%
First Financial Bancorp.	20.74%	11.22%	1.43%

Analyst Ratings

This is a breakdown of current ratings for Old Point Financial and First Financial Bancorp., 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
First Financial Bancorp.	0	2	1	0	2.33

First Financial Bancorp. has a consensus price target of $24.67, indicating a potential downside of 5.16%. Given First Financial Bancorp.’s higher probable upside, analysts clearly believe First Financial Bancorp. is more favorable than Old Point Financial.

Risk & Volatility

Old Point Financial has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, First Financial Bancorp. has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Old Point Financial and First Financial Bancorp.’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Point Financial	$80.50 million	1.07	$7.73 million	$1.26	13.40
First Financial Bancorp.	$820.58 million	3.03	$255.86 million	$2.48	10.49

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

Summary

First Financial Bancorp. beats Old Point Financial on 13 of the 16 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 First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.