Oak Ridge Financial Services (OTCMKTS:BKOR) versus Peoples Financial (OTCMKTS:PFBX) Financial Analysis

Valuation & Earnings

This table compares Oak Ridge Financial Services and Peoples 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	$44.28 million	1.94	$8.01 million	$2.88	10.76
Peoples Financial	$35.66 million	2.75	$3.91 million	$0.88	24.15

Oak Ridge Financial Services has higher revenue and earnings than Peoples Financial. Oak Ridge Financial Services is trading at a lower price-to-earnings ratio than Peoples Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Oak Ridge Financial Services and Peoples Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oak Ridge Financial Services	18.00%	N/A	N/A
Peoples Financial	11.31%	4.06%	0.53%

Risk and Volatility

Oak Ridge Financial Services has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Peoples Financial has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Dividends

Oak Ridge Financial Services pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Oak Ridge Financial Services pays out 22.2% of its earnings in the form of a dividend. Peoples Financial pays out 40.9% 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. Oak Ridge Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

4.2% of Oak Ridge Financial Services shares are held by institutional investors. Comparatively, 32.8% of Peoples Financial shares are held by institutional investors. 25.6% of Oak Ridge Financial Services shares are held by insiders. Comparatively, 28.1% of Peoples Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Peoples Financial beats Oak Ridge Financial Services on 7 of the 13 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 Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.