Comparing CPB (NYSE:CPF) & Oak Ridge Financial Services (OTCMKTS:BKOR)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPB	0	1	2	2	3.20
Oak Ridge Financial Services	0	0	0	0	0.00

CPB currently has a consensus price target of $39.33, suggesting a potential upside of 2.14%. Given CPB’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CPB is more favorable than Oak Ridge Financial Services.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPB	22.52%	14.20%	1.13%
Oak Ridge Financial Services	18.19%	N/A	N/A

Insider and Institutional Ownership

88.4% of CPB shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 1.7% of CPB 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 will outperform the market over the long term.

Earnings and Valuation

This table compares CPB 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
CPB	$365.98 million	2.75	$77.48 million	$3.12	12.34
Oak Ridge Financial Services	$44.28 million	2.02	$8.01 million	$2.86	11.28

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

Volatility and Risk

CPB has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Dividends

CPB pays an annual dividend of $1.16 per share and has a dividend yield of 3.0%. Oak Ridge Financial Services pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. CPB pays out 37.2% of its earnings in the form of a dividend. Oak Ridge Financial Services pays out 22.4% 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. CPB has increased its dividend for 1 consecutive years. CPB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CPB beats Oak Ridge Financial Services on 16 of the 18 factors compared between the two stocks.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.

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.