Solera National Bancorp (OTCMKTS:SLRK) vs. Old Point Financial (NASDAQ:OPOF) Financial Analysis

Old Point Financial (NASDAQ:OPOF) and Solera National Bancorp (OTCMKTS:SLRK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Point Financial	$80.50 million	1.13	$7.73 million	$1.26	14.22
Solera National Bancorp	$65.19 million	0.62	$16.66 million	$3.47	2.69

Solera National Bancorp has lower revenue, but higher earnings than Old Point Financial. Solera National 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.

Analyst Ratings

This is a breakdown of current recommendations for Old Point Financial and Solera National Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Point Financial	0	0	0	0	N/A
Solera National Bancorp	0	0	0	0	N/A

Volatility & Risk

Old Point Financial has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Solera National Bancorp has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

33.4% of Old Point Financial shares are held by institutional investors. 21.1% of Old Point Financial shares are held by company insiders. Comparatively, 17.4% of Solera National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Old Point Financial	8.41%	6.69%	0.49%
Solera National Bancorp	22.01%	N/A	N/A

Summary

Old Point Financial beats Solera National Bancorp on 7 of the 11 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 Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.