Comparing Cullen/Frost Bankers (NYSE:CFR) & Old Point Financial (NASDAQ:OPOF)

Cullen/Frost Bankers (NYSE:CFR) and Old Point Financial (NASDAQ:OPOF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Cullen/Frost Bankers and Old Point Financial’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullen/Frost Bankers	$2.00 billion	3.61	$597.97 million	$8.46	13.28
Old Point Financial	$60.59 million	1.57	$7.73 million	$1.26	14.88

Cullen/Frost Bankers has higher revenue and earnings than Old Point Financial. Cullen/Frost Bankers 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.

Analyst Ratings

This is a breakdown of current recommendations for Cullen/Frost Bankers and Old Point Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullen/Frost Bankers	3	8	3	0	2.00
Old Point Financial	0	0	0	0	N/A

Cullen/Frost Bankers presently has a consensus target price of $119.93, indicating a potential upside of 6.71%. Given Cullen/Frost Bankers’ higher probable upside, analysts clearly believe Cullen/Frost Bankers is more favorable than Old Point Financial.

Profitability

This table compares Cullen/Frost Bankers and Old Point Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cullen/Frost Bankers	19.51%	17.43%	1.18%
Old Point Financial	8.41%	6.69%	0.49%

Dividends

Cullen/Frost Bankers pays an annual dividend of $3.80 per share and has a dividend yield of 3.4%. Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Cullen/Frost Bankers pays out 44.9% of its earnings in the form of a dividend. Old Point Financial pays out 44.4% 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. Cullen/Frost Bankers has raised its dividend for 31 consecutive years and Old Point Financial has raised its dividend for 3 consecutive years. Cullen/Frost Bankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Cullen/Frost Bankers has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Insider & Institutional Ownership

86.9% of Cullen/Frost Bankers shares are held by institutional investors. Comparatively, 33.4% of Old Point Financial shares are held by institutional investors. 2.9% of Cullen/Frost Bankers shares are held by insiders. Comparatively, 21.1% of Old Point Financial shares are held 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.

Summary

Cullen/Frost Bankers beats Old Point Financial on 13 of the 16 factors compared between the two stocks.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.

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.