Head-To-Head Comparison: Ohio Valley Banc (NASDAQ:OVBC) and Bank of America (NYSE:BAC)

Ohio Valley Banc (NASDAQ:OVBC) and Bank of America (NYSE:BAC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Volatility & Risk

Ohio Valley Banc has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

22.1% of Ohio Valley Banc shares are held by institutional investors. Comparatively, 70.7% of Bank of America shares are held by institutional investors. 7.2% of Ohio Valley Banc shares are held by company insiders. Comparatively, 0.3% of Bank of America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Ohio Valley Banc pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Bank of America pays an annual dividend of $1.28 per share and has a dividend yield of 2.5%. Ohio Valley Banc pays out 33.2% of its earnings in the form of a dividend. Bank of America pays out 30.4% 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. Ohio Valley Banc has increased its dividend for 3 consecutive years and Bank of America has increased its dividend for 11 consecutive years. Bank of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Ohio Valley Banc and Bank of America”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ohio Valley Banc	$94.21 million	2.30	$15.60 million	$3.01	15.28
Bank of America	$191.57 billion	1.87	$30.51 billion	$4.21	12.18

Bank of America has higher revenue and earnings than Ohio Valley Banc. Bank of America is trading at a lower price-to-earnings ratio than Ohio Valley Banc, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ohio Valley Banc and Bank of America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ohio Valley Banc	0	0	1	0	3.00
Bank of America	0	6	20	0	2.77

Bank of America has a consensus target price of $62.52, suggesting a potential upside of 21.92%. Given Bank of America’s higher probable upside, analysts plainly believe Bank of America is more favorable than Ohio Valley Banc.

Profitability

This table compares Ohio Valley Banc and Bank of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ohio Valley Banc	14.31%	8.37%	0.88%
Bank of America	16.80%	12.15%	0.97%

Summary

Bank of America beats Ohio Valley Banc on 13 of the 17 factors compared between the two stocks.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.