Reviewing Oak Ridge Financial Services (OTCMKTS:BKOR) & Eagle Financial Services (NASDAQ:EFSI)

Eagle Financial Services (NASDAQ:EFSI) and Oak Ridge Financial Services (OTCMKTS:BKOR) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eagle Financial Services	7.76%	9.87%	0.93%
Oak Ridge Financial Services	18.10%	N/A	N/A

Insider and Institutional Ownership

0.3% of Eagle Financial Services shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 8.7% of Eagle Financial Services shares are held by company insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Eagle Financial Services and Oak Ridge Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Financial Services	0	4	1	0	2.20
Oak Ridge Financial Services	0	0	0	0	0.00

Eagle Financial Services presently has a consensus price target of $43.00, indicating a potential upside of 9.67%. Given Eagle Financial Services’ stronger consensus rating and higher possible upside, research analysts plainly believe Eagle Financial Services is more favorable than Oak Ridge Financial Services.

Volatility and Risk

Eagle Financial Services has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Dividends

Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Oak Ridge Financial Services pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. Eagle Financial Services pays out 95.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oak Ridge Financial Services pays out 19.2% of its earnings in the form of a dividend. Eagle Financial Services has raised its dividend for 14 consecutive years. Eagle Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Eagle Financial Services and Oak Ridge Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Financial Services	$66.45 million	3.19	$8.21 million	$1.30	30.16
Oak Ridge Financial Services	$44.28 million	1.92	$8.01 million	$2.92	10.62

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

Summary

Eagle Financial Services beats Oak Ridge Financial Services on 12 of the 17 factors compared between the two stocks.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. The company’s deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

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.