Oak Ridge Financial Services (OTCMKTS:BKOR – Get Rating) and First Commonwealth Financial (NYSE:FCF – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, 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 out 9.6% of its earnings in the form of a dividend. First Commonwealth Financial pays out 31.7% 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. First Commonwealth Financial has raised its dividend for 5 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Oak Ridge Financial Services and First Commonwealth Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||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 revenue and earnings than Oak Ridge Financial Services. Oak Ridge Financial Services is trading 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 owned by institutional investors. Comparatively, 67.7% of First Commonwealth Financial shares are owned by institutional investors. 25.6% of Oak Ridge Financial Services shares are owned by company insiders. Comparatively, 1.8% of First Commonwealth Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Oak Ridge Financial Services and First Commonwealth Financial’s net margins, return on equity and return on assets.
|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.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|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 higher probable upside, analysts clearly believe 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 that its share price is 35% less volatile than the S&P 500. Comparatively, First Commonwealth Financial has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
First Commonwealth Financial beats Oak Ridge Financial Services on 13 of the 16 factors compared between the two stocks.
Oak Ridge Financial Services Company Profile (Get Rating)
Oak Ridge Financial Services, Inc. operates as a bank holding company for Bank of Oak Ridge that provides various banking products and services for individuals and businesses. It offers checking, savings, and money market accounts; overdrafts; auto, home equity, mortgage, business term, and business SBA loans; business lines of credit; credit cards; 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, renters, 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.
First Commonwealth Financial Company Profile (Get Rating)
First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, 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 a broker-dealer and insurance brokers. As of December 31, 2021, the company operated 118 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern 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 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.
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