CMC vs Ohio Valley Banc Which Is More Promising?

CMC and Ohio Valley Banc are two well-known banking stocks that are frequently compared for investment decisions. CMC, also known as Commercial Metals Company, is a global metal recycling and trading company with a strong presence in North America. On the other hand, Ohio Valley Banc is a regional bank serving customers in Ohio and West Virginia. Both stocks offer investors exposure to the financial sector, but each comes with its own set of risks and potential rewards. It is important for investors to carefully analyze the financial health and growth prospects of these companies before making any investment decisions.

CMC or Ohio Valley Banc?

When comparing CMC and Ohio Valley Banc, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CMC and Ohio Valley Banc.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CMC has a dividend yield of 2.91%, while Ohio Valley Banc has a dividend yield of 3.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CMC reports a 5-year dividend growth of 1.09% year and a payout ratio of 0.00%. On the other hand, Ohio Valley Banc reports a 5-year dividend growth of 3.96% year and a payout ratio of 35.81%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CMC P/E ratio at 12.61 and Ohio Valley Banc's P/E ratio at 10.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CMC P/B ratio is 1.02 while Ohio Valley Banc's P/B ratio is 0.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CMC has seen a 5-year revenue growth of 0.08%, while Ohio Valley Banc's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC's ROE at 8.28% and Ohio Valley Banc's ROE at 7.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1501.00 for CMC and $26.03 for Ohio Valley Banc. Over the past year, CMC's prices ranged from ¥1040.00 to ¥1514.00, with a yearly change of 45.58%. Ohio Valley Banc's prices fluctuated between $19.35 and $28.00, with a yearly change of 44.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.