Orrstown Financial Services (NASDAQ: ORRF) is one of 209 public companies in the “Commercial Banks” industry, but how does it compare to its competitors? We will compare Orrstown Financial Services to similar companies based on the strength of its earnings, analyst recommendations, institutional ownership, profitability, dividends, risk and valuation.

Dividends

Orrstown Financial Services pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Orrstown Financial Services pays out 32.8% 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 34.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

38.0% of Orrstown Financial Services shares are owned by institutional investors. Comparatively, 46.2% of shares of all “Commercial Banks” companies are owned by institutional investors. 5.4% of Orrstown Financial Services shares are owned by company insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Orrstown Financial Services $61.70 million $6.62 million 20.70
Orrstown Financial Services Competitors $343.33 million $72.29 million 18.85

Orrstown Financial Services’ competitors have higher revenue and earnings than Orrstown Financial Services. Orrstown Financial Services is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

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 14.58% 7.23% 0.69%
Orrstown Financial Services Competitors 20.58% 8.80% 0.93%

Risk & Volatility

Orrstown Financial Services has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Orrstown Financial Services’ competitors have a beta of 0.74, indicating that their average share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Orrstown Financial Services and its competitors, 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
Orrstown Financial Services Competitors 357 2831 2297 66 2.37

Orrstown Financial Services currently has a consensus price target of $28.00, suggesting a potential upside of 10.89%. As a group, “Commercial Banks” companies have a potential upside of 4.33%. Given Orrstown Financial Services’ stronger consensus rating and higher probable upside, research analysts clearly believe Orrstown Financial Services is more favorable than its competitors.

Summary

Orrstown Financial Services competitors beat Orrstown Financial Services on 10 of the 15 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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