Old Point Financial (NASDAQ:OPOF) versus Solera National Bancorp (OTCMKTS:SLRK) Financial Contrast

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

Analyst Recommendations

This is a summary of current ratings and target prices for Solera National Bancorp and Old Point Financial, as provided by MarketBeat.com.

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

Earnings & Valuation

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

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

Solera National Bancorp has higher earnings, but lower revenue 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.

Profitability

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

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

Insider & Institutional Ownership

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

Risk & Volatility

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

Summary

Old Point Financial beats Solera National Bancorp on 7 of the 11 factors compared between the two stocks.

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.

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.