SB Financial Group (NASDAQ:SBFG) & Orrstown Financial Services (NASDAQ:ORRF) Financial Review

SB Financial Group (NASDAQ:SBFGGet Rating) and Orrstown Financial Services (NASDAQ:ORRFGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SB Financial Group and Orrstown Financial Services, as provided by MarketBeat.com.

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

Orrstown Financial Services has a consensus price target of $28.00, suggesting a potential upside of 3.40%. Given Orrstown Financial Services’ higher probable upside, analysts clearly believe Orrstown Financial Services is more favorable than SB Financial Group.

Earnings and Valuation

This table compares SB Financial Group and Orrstown Financial Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SB Financial Group $72.60 million 1.59 $18.28 million $1.76 9.39
Orrstown Financial Services $122.85 million 2.35 $32.88 million $2.71 9.99

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

Risk and Volatility

SB Financial Group has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Orrstown Financial Services has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Dividends

SB Financial Group pays an annual dividend of $0.50 per share and has a dividend yield of 3.0%. Orrstown Financial Services pays an annual dividend of $0.76 per share and has a dividend yield of 2.8%. SB Financial Group pays out 28.4% of its earnings in the form of a dividend. Orrstown Financial Services pays out 28.0% 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. SB Financial Group has increased its dividend for 9 consecutive years and Orrstown Financial Services has increased its dividend for 6 consecutive years. SB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

50.0% of SB Financial Group shares are owned by institutional investors. Comparatively, 43.8% of Orrstown Financial Services shares are owned by institutional investors. 4.2% of SB Financial Group shares are owned by insiders. Comparatively, 4.8% of Orrstown Financial Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
SB Financial Group 19.64% 8.45% 0.83%
Orrstown Financial Services 22.87% 12.99% 1.12%

Summary

Orrstown Financial Services beats SB Financial Group on 12 of the 16 factors compared between the two stocks.

About SB Financial Group

(Get Rating)

SB Financial Group, Inc. provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. As of December 31, 2021, the company operated a network of 22 banking centers in the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Wood, and Williams; and one banking center in Allen County, Indiana. It also operated five loan production offices in Franklin and Lucas Counties, Ohio; Hamilton and Steuben Counties, Indiana; and Monroe County, Michigan. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was incorporated in 1983 and is headquartered in Defiance, Ohio.

About Orrstown Financial Services

(Get Rating)

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, construction, working capital, and other commercial purpose loans, as well as industrial loans; consumer loans comprising 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, 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, insurance, and brokerage services. The company operates through offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York counties, Pennsylvania; and Anne Arundel, Baltimore, Howard, and Washington counties, Maryland, as well as Baltimore City, Maryland. Orrstown Financial Services, Inc. was founded in 1919 and is based in Shippensburg, Pennsylvania.

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