KeyCorp (NYSE:KEY) and Old Point Financial (NASDAQ:OPOF) Critical Review

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KeyCorp	$10.40 billion	1.31	$967.00 million	$0.79	18.61
Old Point Financial	$80.50 million	0.91	$7.73 million	$1.54	9.45

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KeyCorp	7.53%	8.89%	0.54%
Old Point Financial	9.60%	7.51%	0.54%

Risk and Volatility

KeyCorp has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Dividends

KeyCorp pays an annual dividend of $0.82 per share and has a dividend yield of 5.6%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. KeyCorp pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KeyCorp	0	6	12	0	2.67
Old Point Financial	0	0	0	0	N/A

KeyCorp currently has a consensus target price of $15.71, indicating a potential upside of 6.84%. Given KeyCorp’s higher possible upside, equities analysts clearly believe KeyCorp is more favorable than Old Point Financial.

Insider and Institutional Ownership

79.7% of KeyCorp shares are held by institutional investors. Comparatively, 33.4% of Old Point Financial shares are held by institutional investors. 0.6% of KeyCorp shares are held by insiders. Comparatively, 16.3% of Old Point Financial shares are held 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.

Summary

KeyCorp beats Old Point Financial on 10 of the 15 factors compared between the two stocks.

About KeyCorp

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The company offers various deposits, investment products and services; commercial leasing, investment management, consumer finance; and personal finance and financial wellness, student loan refinancing, mortgage and home equity, lending, credit card, treasury, business advisory, wealth management, asset management, cash management, portfolio management, and trust and related services to individuals and small and medium-sized businesses. It also provides a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans to consumer, energy, healthcare, industrial, public sector, real estate, and technology sectors for middle market clients. In addition, the company offers community development financing, securities underwriting, brokerage, and investment banking services. The company was founded in 1849 and is headquartered in Cleveland, Ohio.

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.