Orrstown Financial Services (NASDAQ:ORRF) and First US Bancshares (NASDAQ:FUSB) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Institutional & Insider Ownership
38.2% of Orrstown Financial Services shares are owned by institutional investors. Comparatively, 15.5% of First US Bancshares shares are owned by institutional investors. 5.7% of Orrstown Financial Services shares are owned by company insiders. Comparatively, 9.7% of First US Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and recommmendations for Orrstown Financial Services and First US Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orrstown Financial Services||0||0||3||0||3.00|
|First US Bancshares||0||0||0||0||N/A|
Orrstown Financial Services presently has a consensus price target of $29.00, indicating a potential upside of 45.29%. Given Orrstown Financial Services’ higher possible upside, equities analysts clearly believe Orrstown Financial Services is more favorable than First US Bancshares.
Earnings and Valuation
This table compares Orrstown Financial Services and First US Bancshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orrstown Financial Services||$71.40 million||2.64||$8.09 million||$1.30||15.35|
|First US Bancshares||$35.77 million||1.40||-$410,000.00||N/A||N/A|
Orrstown Financial Services has higher revenue and earnings than First US Bancshares.
This table compares Orrstown Financial Services and First US Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orrstown Financial Services||14.34%||9.89%||0.87%|
|First US Bancshares||-2.15%||2.12%||0.24%|
Orrstown Financial Services pays an annual dividend of $0.52 per share and has a dividend yield of 2.6%. First US Bancshares pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Orrstown Financial Services pays out 40.0% of its earnings in the form of a dividend. Orrstown Financial Services has raised its dividend for 2 consecutive years. Orrstown Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Orrstown Financial Services has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, First US Bancshares has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.
Orrstown Financial Services beats First US Bancshares on 11 of the 15 factors compared between the two stocks.
About Orrstown Financial Services
Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, working capital, and other commercial purpose loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; agribusiness loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, the company provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as provides other fiduciary services under the Orrstown Financial Advisors name; and offers retail brokerage services through a third-party broker/dealer arrangement. Further, it offers investment advisory services through an office in Lancaster County, Pennsylvania. The company provides its banking and bank-related services through branches located in Berks, Cumberland, Dauphin, Franklin, Lancaster, and Perry counties of Pennsylvania, as well as Washington County, Maryland. Orrstown Financial Services, Inc. was founded in 1919 and is headquartered in Shippensburg, Pennsylvania.
About First US Bancshares
First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services in Alabama. The company accepts deposit products, such as non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include loans for the development of residential housing projects, development of commercial and industrial use property, and purchase and improvement of raw land; mortgage loans on one-to-four family residential properties and secured by apartment buildings; home equity loans and lines of credit; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, or other commercial property; loans for agricultural production; commercial and industrial loans; and automobile, household and personal, and other direct consumer installment loans. The company also provides letters of credit; debit and credit cards; ATMs; and safe deposit box, remote deposit capture, wire transfer, and real estate rental services, as well as reinsures or underwrites credit life, and credit accident and health insurance policies. First US Bancshares, Inc. serves small- and medium-sized businesses, property managers, business executives, professionals, and other individuals. It operates and serves its customers through 16 full-service banking offices located in Birmingham, Bucksville, Butler, Calera, Centreville, Columbiana, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa, and Woodstock, Alabama; and a loan production office located in Mountain Brook, a suburb of Birmingham, Alabama. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is based in Birmingham, Alabama.
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