Orrstown Financial Services (NASDAQ:ORRF – Get Free Report) and Banco Bradesco (NYSE:BBDO – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Analyst Recommendations
This is a summary of recent ratings and price targets for Orrstown Financial Services and Banco Bradesco, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orrstown Financial Services | 0 | 2 | 3 | 0 | 2.60 |
| Banco Bradesco | 0 | 1 | 0 | 0 | 2.00 |
Orrstown Financial Services presently has a consensus price target of $44.33, indicating a potential upside of 7.27%. Given Orrstown Financial Services’ stronger consensus rating and higher possible upside, equities analysts plainly believe Orrstown Financial Services is more favorable than Banco Bradesco.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orrstown Financial Services | $252.33 million | 3.22 | $80.86 million | $4.45 | 9.29 |
| Banco Bradesco | $41.79 billion | 1.02 | $4.24 billion | $0.42 | 9.54 |
Banco Bradesco has higher revenue and earnings than Orrstown Financial Services. Orrstown Financial Services is trading at a lower price-to-earnings ratio than Banco Bradesco, indicating that it is currently the more affordable of the two stocks.
Dividends
Orrstown Financial Services pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Banco Bradesco pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. Orrstown Financial Services pays out 27.0% of its earnings in the form of a dividend. Banco Bradesco pays out 7.1% 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. Orrstown Financial Services has increased its dividend for 10 consecutive years. Orrstown Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
44.3% of Orrstown Financial Services shares are held by institutional investors. 4.3% of Orrstown Financial Services shares are held by insiders. Comparatively, 0.3% of Banco Bradesco shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Orrstown Financial Services has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Banco Bradesco has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.
Profitability
This table compares Orrstown Financial Services and Banco Bradesco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orrstown Financial Services | 24.00% | 14.46% | 1.56% |
| Banco Bradesco | 10.20% | 14.61% | 1.11% |
Summary
Orrstown Financial Services beats Banco Bradesco on 12 of the 17 factors compared between the two stocks.
About Orrstown Financial Services
Orrstown Financial Services, Inc. operates as the financial holding company for Orrstown Bank that provides commercial banking and financial advisory services to retail, commercial, non-profit, and government clients in the United States. It accepts various deposits, including checking, savings, time, demand, and money market deposits, as well as certificates of deposit. The company also offers commercial loans, such as commercial real estate, equipment, construction, working capital, and other commercial purpose loans, as well as industrial loans; consumer loans, such as home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, it provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as other fiduciary services under the Orrstown Financial Advisors name; and retail brokerage services through a third-party broker/dealer arrangement. Further, the company offers fiduciary, investment advisory, insurance, and brokerage services. Orrstown Financial Services, Inc. was founded in 1919 and is headquartered in Shippensburg, Pennsylvania.
About Banco Bradesco
Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segments, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; overdraft and agribusiness loans; debit and business cards; financial and security services; consortium products; car, personal accident, dental, travel, and life insurance; investment products; pension products; foreign currency exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
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