First Commonwealth Financial (NYSE:FCF) versus Oak Ridge Financial Services (OTCMKTS:BKOR) Financial Review

First Commonwealth Financial (NYSE:FCFGet Rating) and Oak Ridge Financial Services (OTCMKTS:BKORGet Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares First Commonwealth Financial and Oak Ridge Financial Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Commonwealth Financial $400.60 million 3.40 $138.26 million $1.45 9.97
Oak Ridge Financial Services $27.47 million 1.91 $7.76 million $2.91 6.75

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.

Analyst Ratings

This is a summary of current ratings and target prices for First Commonwealth Financial and Oak Ridge Financial Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Commonwealth Financial 0 2 3 0 2.60
Oak Ridge Financial Services 0 0 0 0 N/A

First Commonwealth Financial currently has a consensus target price of $18.50, suggesting a potential upside of 28.03%. Given First Commonwealth Financial’s higher probable upside, analysts clearly believe First Commonwealth Financial is more favorable than Oak Ridge Financial Services.

Profitability

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

Net Margins Return on Equity Return on Assets
First Commonwealth Financial 34.51% 12.55% 1.46%
Oak Ridge Financial Services 28.27% N/A N/A

Institutional & Insider Ownership

67.7% of First Commonwealth Financial shares are owned by institutional investors. Comparatively, 6.3% of Oak Ridge Financial Services shares are owned by institutional investors. 1.8% of First Commonwealth Financial shares are owned by company insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

First Commonwealth Financial has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Dividends

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 an annual dividend of $0.28 per share and has a dividend yield of 1.4%. First Commonwealth Financial pays out 31.7% of its earnings in the form of a dividend. Oak Ridge Financial Services pays out 9.6% 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 increased 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.

Summary

First Commonwealth Financial beats Oak Ridge Financial Services on 13 of the 16 factors compared between the two stocks.

About First Commonwealth Financial (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.

About Oak Ridge Financial Services (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.

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