Financial Comparison: Suffolk Bancorp (SCNB) vs. Orrstown Financial Services (ORRF)
Suffolk Bancorp (NYSE: SCNB) and Orrstown Financial Services (NASDAQ:ORRF) are both small-cap commercial banks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Volatility & Risk
Suffolk Bancorp has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Orrstown Financial Services has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
This table compares Suffolk Bancorp and Orrstown Financial Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orrstown Financial Services||$61.70 million||3.47||$6.62 million||$1.22||21.02|
Orrstown Financial Services has higher revenue and earnings than Suffolk Bancorp. Orrstown Financial Services is trading at a lower price-to-earnings ratio than Suffolk Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares Suffolk Bancorp and Orrstown Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orrstown Financial Services||14.58%||7.15%||0.68%|
Institutional & Insider Ownership
58.8% of Suffolk Bancorp shares are owned by institutional investors. Comparatively, 39.6% of Orrstown Financial Services shares are owned by institutional investors. 4.6% of Suffolk Bancorp shares are owned by insiders. Comparatively, 5.4% of Orrstown Financial Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Suffolk Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Orrstown Financial Services pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Suffolk Bancorp pays out 24.1% of its earnings in the form of a dividend. Orrstown Financial Services pays out 39.3% 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.
This is a breakdown of recent ratings and target prices for Suffolk Bancorp and Orrstown Financial Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orrstown Financial Services||0||1||1||0||2.50|
Suffolk Bancorp presently has a consensus target price of $43.00, indicating a potential upside of 6.41%. Orrstown Financial Services has a consensus target price of $28.00, indicating a potential upside of 9.16%. Given Orrstown Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe Orrstown Financial Services is more favorable than Suffolk Bancorp.
Orrstown Financial Services beats Suffolk Bancorp on 7 of the 13 factors compared between the two stocks.
About Suffolk Bancorp
Suffolk Bancorp is the bank holding company for Suffolk County National Bank of Riverhead (the Bank). The Bank is a community bank, which offers commercial and retail banking services to its customers. The Bank makes commercial real estate floating and fixed rate loans, multifamily and mixed use commercial loans primarily in the boroughs of New York City, commercial and industrial loans to manufacturers, wholesalers, distributors, developers/contractors and retailers and agricultural loans. The Bank finances its activities through a combination of deposits, including demand, saving, negotiable order of withdrawal and money market deposits, as well as time deposits, and short-term borrowings, which could include federal funds with correspondent banks, securities sold under agreements to repurchase and Federal Home Loan Bank (FHLB) borrowings.
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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