Oak Ridge Financial Services (OTCMKTS:BKOR – Get Rating) and Truist Financial (NYSE:TFC – Get Rating) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
This is a summary of recent ratings and recommmendations for Oak Ridge Financial Services and Truist Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oak Ridge Financial Services||0||0||0||0||N/A|
Insider & Institutional Ownership
3.1% of Oak Ridge Financial Services shares are held by institutional investors. Comparatively, 72.8% of Truist Financial shares are held by institutional investors. 25.6% of Oak Ridge Financial Services shares are held by insiders. Comparatively, 0.3% of Truist Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Oak Ridge Financial Services and Truist Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oak Ridge Financial Services||$27.47 million||1.84||$7.76 million||$2.76||6.76|
|Truist Financial||$23.06 billion||2.86||$6.44 billion||$4.48||11.05|
Truist Financial has higher revenue and earnings than Oak Ridge Financial Services. Oak Ridge Financial Services is trading at a lower price-to-earnings ratio than Truist Financial, indicating that it is currently the more affordable of the two stocks.
Oak Ridge Financial Services pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. Truist Financial pays an annual dividend of $1.92 per share and has a dividend yield of 3.9%. Oak Ridge Financial Services pays out 11.6% of its earnings in the form of a dividend. Truist Financial pays out 42.9% 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. Truist Financial has raised its dividend for 1 consecutive years. Truist Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Oak Ridge Financial Services has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Truist Financial has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
This table compares Oak Ridge Financial Services and Truist Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oak Ridge Financial Services||27.09%||N/A||N/A|
Truist Financial beats Oak Ridge Financial Services on 14 of the 16 factors compared between the two stocks.
Oak Ridge Financial Services Company Profile (Get Rating)
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.
Truist Financial Company Profile (Get Rating)
Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, workers compensation and professional liability, surety coverage, title, and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services. In addition, it offers association, capital market, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, government finance, commercial middle market lending, small business and student lending, floor plan and commercial mortgage lending, mortgage warehouse lending, private equity investment, real estate lending, and supply chain financing services. Further, the company provides corporate and investment banking, retail and wholesale brokerage, securities underwriting, and investment advisory services. As of December 31, 2021, the company operated through 2,517 banking offices. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.
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