Analyzing Orrstown Financial Services (NASDAQ:ORRF) & Benchmark Bankshares (OTCMKTS:BMBN)

Orrstown Financial Services (NASDAQ:ORRF) and Benchmark Bankshares (OTCMKTS:BMBN) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Dividends

Orrstown Financial Services pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. Benchmark Bankshares pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. Orrstown Financial Services pays out 23.5% of its earnings in the form of a dividend. Orrstown Financial Services has raised its dividend for 1 consecutive years.

Institutional & Insider Ownership

44.3% of Orrstown Financial Services shares are held by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are held by institutional investors. 5.3% of Orrstown Financial Services shares are held by company insiders. Comparatively, 14.0% of Benchmark Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Orrstown Financial Services and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orrstown Financial Services	20.32%	14.74%	1.21%
Benchmark Bankshares	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Orrstown Financial Services and Benchmark Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orrstown Financial Services	0	1	1	0	2.50
Benchmark Bankshares	0	0	0	0	N/A

Orrstown Financial Services presently has a consensus target price of $28.50, suggesting a potential upside of 10.08%. Given Orrstown Financial Services’ higher possible upside, equities research analysts clearly believe Orrstown Financial Services is more favorable than Benchmark Bankshares.

Volatility & Risk

Orrstown Financial Services has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Valuation and Earnings

This table compares Orrstown Financial Services and Benchmark Bankshares’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orrstown Financial Services	$129.31 million	2.14	$35.66 million	$3.41	7.59
Benchmark Bankshares	N/A	N/A	N/A	N/A	N/A

Orrstown Financial Services has higher revenue and earnings than Benchmark Bankshares.

Summary

Orrstown Financial Services beats Benchmark Bankshares on 9 of the 12 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 Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.