Bank of Nova Scotia (NYSE:BNS) and Ohio Valley Bank (NASDAQ:OVBC)


Bank of Nova Scotia (NYSE: BNS – Get Rating) and Ohio Valley Banc (NASDAQ: OVBC – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on institutional ownership strength, risk, dividends, analyst recommendations, profitability, earnings, and valuation.

Risk and Volatility

Bank of Nova Scotia has a beta of 0.97, which means its stock price is 3% less volatile than the S&P 500. In comparison, Ohio Valley Banc has a beta of 0.23, which means that its stock price is 77% less volatile than the S&P 500. .

Insider and Institutional Ownership

45.0% of Bank of Nova Scotia shares are held by institutional investors. By comparison, 13.6% of Ohio Valley Banc shares are held by institutional investors. 3.6% of Ohio Valley Banc’s stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Bank of Nova Scotia and Ohio Valley Banc.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bank of Nova Scotia $31.20 billion 2.22 $7.65 billion $6.58 8.83
Ohio Valley Bench $54.58 million 2.56 $11.73 million $2.58 11:35 a.m.

The Bank of Nova Scotia has higher revenues and profits than the Ohio Valley Bank. Bank of Nova Scotia 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 Recommendations

This is a summary of recent ratings and recommendations for Bank of Nova Scotia and Ohio Valley Banc, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bank of Nova Scotia 0 6 4 0 2.40
Ohio Valley Bench 0 0 0 0 N / A

The Bank of Nova Scotia currently has a consensus target price of $94.39, suggesting a potential upside of 62.38%. Given Bank of Nova Scotia’s possible higher upside, analysts clearly believe that Bank of Nova Scotia is more favorable than Ohio Valley Banc.

Profitability

This chart compares the net margins, return on equity, and return on assets of Bank of Nova Scotia and Ohio Valley Bank.

Net margins Return on equity return on assets
Bank of Nova Scotia 25.78% 15.66% 0.86%
Ohio Valley Bench 22.62% 8.83% 0.99%

Dividends

The Bank of Nova Scotia pays an annual dividend of $3.20 per share and has a dividend yield of 5.5%. Ohio Valley Banc pays an annual dividend of $0.84 per share and has a dividend yield of 2.9%. The Bank of Nova Scotia pays 48.6% of its profits in the form of dividends. Ohio Valley Banc pays 32.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.

Summary

Bank of Nova Scotia beats Ohio Valley Banc on 10 of 15 factors compared between the two stocks.

About The Bank of Nova Scotia

(Get an evaluation)

The Bank of Nova Scotia offers a variety of banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, as well as internationally. It operates through four segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The Company offers financial advice and solutions, as well as everyday banking products, including debit and credit cards, checking and savings accounts, investments, mortgages, personal loans and insurance; and business banking solutions comprising lending, deposit, cash management and commercial finance solutions for small, medium and large businesses, including automotive finance solutions for dealerships and their customers. It also provides wealth management advice and solutions, including online brokerage, mobile investing, full-service brokerage, trust, private banking and private investment advisory services; and retail mutual funds, exchange-traded funds, liquid alternative funds, and institutional funds. Additionally, the company offers international banking services for individuals, businesses and commercial clients; and lending and transaction services, investment banking advisory and access to capital markets to corporate clients. Additionally, it provides online, mobile and telephone banking services. The company operates a network of 954 branches and approximately 3,766 automated banking machines in Canada; and approximately 1,300 branches and a network of contact and support centers worldwide. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

About Ohio Valley Bench

(Get an evaluation)

Ohio Valley Banc Corp. operates as a bank holding company for The Ohio Valley Bank Company which provides corporate and personal banking products and services. The Company operates in two segments, Banking and Consumer Finance. It accepts a variety of deposit products, including checking, savings, term, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The Company also offers various residential real estate loans, including residential mortgages for one to four families; commercial loans for securing equipment, inventory, inventory, commercial real estate and rental properties; 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 boxes, electronic transfers, credit card services and internet banking; and online financial management services, such as cash management and updates related to repossession auctions, current rates and general banking news. In addition, the Company provides automated teller machine (ATM) services, consumer credit services, seasonal tax preparation services, commercial property and various liability insurance services, as well as direct-to-consumer mortgages and trusts online only. It operates sixteen offices in Ohio and West Virginia; and six consumer credit bureaus in Ohio. The company owns and operates thirty-six ATMs, twenty of which are off-site. Ohio Valley Banc Corp. was founded in 1872 and is headquartered in Gallipolis, Ohio.



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