Comparing First Horizon (NYSE:FHN) and Old Point Financial (NASDAQ:OPOF)

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

Earnings & Valuation

This table compares Old Point Financial and First Horizon”s 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	1.24	$7.73 million	$1.60	12.27
First Horizon	$5.03 billion	1.83	$897.00 million	$1.38	12.46

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Old Point Financial and First Horizon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Point Financial	0	0	0	0	N/A
First Horizon	0	5	8	0	2.62

First Horizon has a consensus price target of $17.92, suggesting a potential upside of 4.23%. Given First Horizon’s higher possible upside, analysts plainly believe First Horizon is more favorable than Old Point Financial.

Volatility and Risk

Old Point Financial has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

33.4% of Old Point Financial shares are owned by institutional investors. Comparatively, 80.3% of First Horizon shares are owned by institutional investors. 21.1% of Old Point Financial shares are owned by company insiders. Comparatively, 0.9% of First Horizon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Old Point Financial pays out 35.0% of its earnings in the form of a dividend. First Horizon pays out 43.5% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Point Financial	9.47%	7.50%	0.56%
First Horizon	15.43%	9.51%	1.01%

Summary

First Horizon 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 First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.