Contrasting Intercorp Financial Services (NYSE:IFS) and Oak Valley Bancorp (NASDAQ:OVLY)

Oak Valley Bancorp (NASDAQ:OVLY) and Intercorp Financial Services (NYSE:IFS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

This table compares Oak Valley Bancorp and Intercorp Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oak Valley Bancorp	24.05%	11.31%	1.17%
Intercorp Financial Services	34.81%	17.06%	2.10%

Analyst Recommendations

This is a summary of recent ratings and price targets for Oak Valley Bancorp and Intercorp Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oak Valley Bancorp	0	0	1	0	3.00
Intercorp Financial Services	0	1	1	1	3.00

Intercorp Financial Services has a consensus price target of $62.00, suggesting a potential upside of 12.50%. Given Intercorp Financial Services’ higher possible upside, analysts clearly believe Intercorp Financial Services is more favorable than Oak Valley Bancorp.

Valuation & Earnings

This table compares Oak Valley Bancorp and Intercorp Financial Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oak Valley Bancorp	$83.84 million	3.40	$23.91 million	$2.82	12.01
Intercorp Financial Services	$7.15 billion	0.86	$542.25 million	$5.47	10.07

Intercorp Financial Services has higher revenue and earnings than Oak Valley Bancorp. Intercorp Financial Services is trading at a lower price-to-earnings ratio than Oak Valley Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Oak Valley Bancorp has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Intercorp Financial Services has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Dividends

Oak Valley Bancorp pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. Intercorp Financial Services pays an annual dividend of $1.71 per share and has a dividend yield of 3.1%. Oak Valley Bancorp pays out 26.6% of its earnings in the form of a dividend. Intercorp Financial Services pays out 31.3% 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. Oak Valley Bancorp has increased its dividend for 11 consecutive years and Intercorp Financial Services has increased its dividend for 1 consecutive years.

Insider & Institutional Ownership

30.9% of Oak Valley Bancorp shares are held by institutional investors. 13.9% of Oak Valley Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Intercorp Financial Services beats Oak Valley Bancorp on 10 of the 16 factors compared between the two stocks.

About Oak Valley Bancorp

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including automobile loans, home mortgages, credit lines, and other personal loans. In addition, the company provides online and mobile banking, remote deposit capture, merchant, night depository, extended hours, wire transfer of funds, note collection services, and automated teller machines. The company was incorporated in 1990 and is headquartered in Oakdale, California.

About Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.