Head-To-Head Survey: Oak Ridge Financial Services (OTCMKTS:BKOR) and Bancorp (NASDAQ:TBBK)

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

Analyst Recommendations

This is a breakdown of current ratings for Oak Ridge Financial Services and Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oak Ridge Financial Services	0	0	0	0	N/A
Bancorp	0	0	3	0	3.00

Bancorp has a consensus price target of $49.00, indicating a potential upside of 34.28%. Given Bancorp’s higher probable upside, analysts plainly believe Bancorp is more favorable than Oak Ridge Financial Services.

Institutional and Insider Ownership

4.2% of Oak Ridge Financial Services shares are owned by institutional investors. Comparatively, 96.2% of Bancorp shares are owned by institutional investors. 25.6% of Oak Ridge Financial Services shares are owned by company insiders. Comparatively, 5.2% of Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Oak Ridge Financial Services has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oak Ridge Financial Services	15.78%	N/A	N/A
Bancorp	31.40%	26.32%	2.70%

Valuation & Earnings

This table compares Oak Ridge Financial Services and Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oak Ridge Financial Services	$35.36 million	1.32	$5.74 million	$2.13	7.93
Bancorp	$621.60 million	3.07	$192.30 million	$3.68	9.92

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

Summary

Bancorp beats Oak Ridge Financial Services on 12 of the 13 factors compared between the two stocks.

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.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.