Contrasting Oak Ridge Financial Services (OTCMKTS:BKOR) & First Community Bancshares (NASDAQ:FCBC)

Earnings and Valuation

This table compares Oak Ridge Financial Services and First Community Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oak Ridge Financial Services	$41.04 million	1.80	$5.67 million	$2.48	10.82
First Community Bancshares	$185.53 million	3.54	$51.60 million	$2.73	13.11

First Community Bancshares 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 Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Oak Ridge Financial Services has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Dividends

Oak Ridge Financial Services pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. First Community Bancshares pays an annual dividend of $1.24 per share and has a dividend yield of 3.5%. Oak Ridge Financial Services pays out 22.6% of its earnings in the form of a dividend. First Community Bancshares pays out 45.4% 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 Community Bancshares has increased its dividend for 13 consecutive years. First Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

4.2% of Oak Ridge Financial Services shares are owned by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are owned by institutional investors. 25.6% of Oak Ridge Financial Services shares are owned by company insiders. Comparatively, 3.7% of First Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Oak Ridge Financial Services and First Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oak Ridge Financial Services	15.83%	N/A	N/A
First Community Bancshares	27.07%	9.68%	1.54%

Summary

First Community Bancshares beats Oak Ridge Financial Services on 12 of the 14 factors compared between the two stocks.

About Oak Ridge Financial Services

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.

About First Community Bancshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.