Orrstown Financial Services (NASDAQ: ORRF) is one of 207 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its competitors? We will compare Orrstown Financial Services to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, institutional ownership, dividends and earnings.

Profitability

This table compares Orrstown Financial Services and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orrstown Financial Services 13.25% 6.25% 0.61%
Orrstown Financial Services Competitors 19.90% 8.42% 0.89%

Institutional and Insider Ownership

38.0% of Orrstown Financial Services shares are owned by institutional investors. Comparatively, 46.6% of shares of all “Commercial Banks” companies are owned by institutional investors. 5.4% of Orrstown Financial Services shares are owned by insiders. Comparatively, 11.6% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Orrstown Financial Services and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orrstown Financial Services 0 0 1 0 3.00
Orrstown Financial Services Competitors 389 2958 2410 70 2.37

Orrstown Financial Services presently has a consensus target price of $28.00, suggesting a potential upside of 8.11%. As a group, “Commercial Banks” companies have a potential upside of 1.61%. Given Orrstown Financial Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Orrstown Financial Services is more favorable than its competitors.

Risk & Volatility

Orrstown Financial Services has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Orrstown Financial Services’ competitors have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Dividends

Orrstown Financial Services pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Orrstown Financial Services pays out 37.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.5% of their earnings in the form of a dividend. Orrstown Financial Services lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Orrstown Financial Services and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Orrstown Financial Services $58.69 million N/A 24.43
Orrstown Financial Services Competitors N/A N/A 25.42

Orrstown Financial Services is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Orrstown Financial Services competitors beat Orrstown Financial Services on 9 of the 14 factors compared.

About Orrstown Financial Services

Orrstown Financial Services, Inc. is the bank holding company for Orrstown Bank (the Bank). The Bank is engaged in commercial banking and trust business. The Company operates through Community Banking segment. The Bank’s activities involve accepting demand, time and savings deposits, and granting loans. The Bank grants commercial, residential, consumer and agribusiness loans in its market areas of Cumberland, Franklin, Lancaster and Perry Counties in Pennsylvania and in Washington County, Maryland. The Company’s securities available for sale include debt and equity instruments. Through its trust department, the Bank renders services as trustee, executor, administrator, managing agent, custodian, investment advisor and other fiduciary activities authorized by law under the trade name, Orrstown Financial Advisors (OFA). OFA offers retail brokerage services through a third-party broker or dealer arrangement with Cetera Advisor Networks LLC.

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