Oak Ridge Financial Services (OTCMKTS:BKOR – Get Rating) and First Commonwealth Financial (NYSE:FCF – Get Rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on their risk strength, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Oak Ridge Financial Services pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. First Commonwealth Financial pays an annual dividend of $0.46 per share and has a dividend yield of 3.2%. Oak Ridge Financial Services pays 9.6% of its earnings as a dividend. First Commonwealth Financial pays 31.7% of its profits in the form of dividends. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Commonwealth Financial has increased its dividend for 5 consecutive years. First Commonwealth Financial is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Oak Ridge Financial Services and First Commonwealth Financial.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Oak Ridge Financial Services||$27.47 million||1.93||$7.76 million||$2.91||6.75|
|First Commonwealth Financial||$400.60 million||3.40||$138.26 million||$1.45||9.97|
First Commonwealth Financial has higher revenues and profits than Oak Ridge Financial Services. Oak Ridge Financial Services trades at a lower price-to-earnings ratio than First Commonwealth Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
6.3% of Oak Ridge Financial Services shares are held by institutional investors. By comparison, 67.7% of First Commonwealth Financial’s shares are held by institutional investors. 25.6% of Oak Ridge Financial Services stock is held by company insiders. By comparison, 1.8% of First Commonwealth Financial’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
This table compares the net margins, return on equity and return on assets of Oak Ridge Financial Services and First Commonwealth Financial.
|Net margins||Return on equity||return on assets|
|Oak Ridge Financial Services||28.27%||N / A||N / A|
|First Commonwealth Financial||34.51%||12.55%||1.46%|
This is a breakdown of recent recommendations and price targets for Oak Ridge Financial Services and First Commonwealth Financial, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Oak Ridge Financial Services||0||0||0||0||N / A|
|First Commonwealth Financial||0||2||3||0||2.60|
First Commonwealth Financial has a consensus target price of $18.50, suggesting a potential upside of 27.94%. Given First Commonwealth Financial’s likely higher upside, analysts clearly believe that First Commonwealth Financial is more favorable than Oak Ridge Financial Services.
Volatility and risk
Oak Ridge Financial Services has a beta of 0.65, meaning its stock price is 35% less volatile than the S&P 500. In comparison, First Commonwealth Financial has a beta of 1.02, meaning its stock price is 2% more volatile than the S&P 500. .
First Commonwealth Financial beats Oak Ridge Financial Services on 13 out of 16 factors compared between the two stocks.
Oak Ridge Financial Services Company Profile (Get an evaluation)
Oak Ridge Financial Services, Inc. operates as a bank holding company for Bank of Oak Ridge which provides various personal and business banking products and services. It offers checking, savings, and money market accounts; discovered; auto, home equity, mortgage, business term and SBA business loans; commercial lines of credit; credit card; and online and mobile banking products and services. The company also provides health savings accounts, identity theft protection, wealth management, cash management and remote deposit capture services; and auto, home, small business, renter, life, boat and watercraft, classic car, motorcycle, flood, pet and umbrella insurance products. It operates through a network of branches in Oak Ridge, Greensboro and Summerfield, North Carolina. The company was founded in 2000 and is based in Oak Ridge, North Carolina.
Profile of the Commonwealth’s First Financial Corporation (Get an evaluation)
First Commonwealth Financial Corporation, a financial holding company, provides various retail and corporate banking services in the United States. Its consumer services include personal checking accounts, interest-bearing checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, interest rate certificates of deposit fixed and variable loans, mortgages, secured and unsecured installment loans, construction and home loans, safe deposit boxes, credit cards, lines of credit with overdraft protection, IRA accounts and automated teller machine (ATM) services ), as well as internet, mobile and telephone banking. The Company’s commercial banking services include commercial loans, business checking accounts, online account management services, payroll direct deposits, commercial cash management services and repurchase agreements, as well as ACH origination services. It also offers various trust and asset management services; auto, home and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through broker and insurance brokers. As of December 31, 2021, the company operated 118 community banking offices in western and central Pennsylvania, and northeast, central, and southwest Ohio; corporate banking centers in Pittsburgh, Pennsylvania, as well as Columbus, Canton and Cleveland, Ohio; and mortgage banking offices in Wexford, Pennsylvania, and Hudson, Westlake, as well as Lewis Center, Ohio. It also operates 136 ATMs. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.
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