Old Point Financial (NASDAQ:OPOF) versus NewtekOne (NASDAQ:NEWT) Head-To-Head Analysis

Old Point Financial (NASDAQ:OPOF) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Point Financial	11.08%	8.56%	0.66%
NewtekOne	14.92%	18.73%	2.95%

Dividends

Old Point Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 7.3%. Old Point Financial pays out 29.8% of its earnings in the form of a dividend. NewtekOne pays out 39.0% 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Point Financial	0	0	0	0	0.00
NewtekOne	0	4	0	0	2.00

NewtekOne has a consensus target price of $14.50, indicating a potential upside of 39.04%. Given NewtekOne’s stronger consensus rating and higher possible upside, analysts plainly believe NewtekOne is more favorable than Old Point Financial.

Valuation & Earnings

This table compares Old Point Financial and NewtekOne”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Point Financial	$61.63 million	3.08	$9.51 million	$1.88	19.77
NewtekOne	$237.74 million	1.15	$47.33 million	$1.95	5.35

NewtekOne has higher revenue and earnings than Old Point Financial. NewtekOne 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.

Volatility & Risk

Old Point Financial has a beta of -0.22, suggesting that its share price is 122% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

33.4% of Old Point Financial shares are owned by institutional investors. Comparatively, 38.3% of NewtekOne shares are owned by institutional investors. 21.1% of Old Point Financial shares are owned by company insiders. Comparatively, 6.5% of NewtekOne shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

NewtekOne beats Old Point Financial on 11 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 NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.