Financial Survey: Old National Bancorp (NASDAQ:ONB) versus Oak Ridge Financial Services (OTCMKTS:BKOR)

Oak Ridge Financial Services (OTCMKTS:BKOR) and Old National Bancorp (NASDAQ:ONB) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Dividends

Oak Ridge Financial Services pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Old National Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Oak Ridge Financial Services pays out 23.5% of its earnings in the form of a dividend. Old National Bancorp pays out 33.9% 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Oak Ridge Financial Services and Old National Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oak Ridge Financial Services	0	0	0	0	0.00
Old National Bancorp	0	1	6	1	3.00

Old National Bancorp has a consensus target price of $24.38, indicating a potential upside of 10.80%. Given Old National Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Old National Bancorp is more favorable than Oak Ridge Financial Services.

Earnings & Valuation

This table compares Oak Ridge Financial Services and Old National Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oak Ridge Financial Services	$35.36 million	1.62	$5.74 million	$2.04	10.16
Old National Bancorp	$1.86 billion	3.77	$581.99 million	$1.65	13.33

Old National 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 Old National Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

4.2% of Oak Ridge Financial Services shares are held by institutional investors. Comparatively, 83.7% of Old National Bancorp shares are held by institutional investors. 25.6% of Oak Ridge Financial Services shares are held by company insiders. Comparatively, 1.1% of Old National Bancorp shares are held by company 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.

Volatility and Risk

Oak Ridge Financial Services has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Old National Bancorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oak Ridge Financial Services	13.99%	N/A	N/A
Old National Bancorp	17.93%	10.10%	1.12%

Summary

Old National Bancorp beats Oak Ridge Financial Services on 14 of the 17 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 Old National Bancorp

Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, agricultural loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, and capital markets services, as well as community development lending and equity investment solutions. The company was founded in 1834 and is headquartered in Evansville, Indiana.