Orrstown Financial Services (NASDAQ:ORRF – Get Rating) and MainStreet Bancshares (NASDAQ:MNSB – Get Rating) are both small cap finance companies, but which business is superior? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Risk and Volatility
Orrstown Financial Services has a beta of 0.85, suggesting its stock price is 15% less volatile than the S&P 500. By comparison, MainStreet Bancshares has a beta of 0.42, suggesting its stock price is 58 % less volatile than the S&P 500.
This is a summary of current ratings and price targets for Orrstown Financial Services and MainStreet Bancshares, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Orrstown Financial Services||0||0||1||0||3.00|
MainStreet Bancshares has a consensus target price of $26.00, suggesting a potential upside of 3.26%. Given the likely higher upside of MainStreet Bancshares, analysts clearly believe that MainStreet Bancshares is more favorable than Orrstown Financial Services.
Valuation and benefits
This chart compares the revenue, earnings per share (EPS), and valuation of Orrstown Financial Services and MainStreet Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Orrstown Financial Services||$122.85 million||2.21||$32.88 million||$2.80||8.76|
|MainStreet Bancshares||$70.31 million||2.71||$22.17 million||$2.63||9.57|
Orrstown Financial Services has higher revenue and profit than MainStreet Bancshares. Orrstown Financial Services trades at a lower price-to-earnings ratio than MainStreet Bancshares, indicating that it is currently the more affordable of the two stocks.
Orrstown Financial Services pays an annual dividend of $0.76 per share and has a dividend yield of 3.1%. MainStreet Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Orrstown Financial Services pays 27.1% of its profits as a dividend. MainStreet Bancshares pays 7.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Orrstown Financial Services has increased its dividend for 6 consecutive years. Orrstown Financial Services is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
43.8% of the shares of Orrstown Financial Services are held by institutional investors. By comparison, 41.9% of MainStreet Bancshares shares are held by institutional investors. 4.8% of the shares of Orrstown Financial Services are held by insiders of the company. By comparison, 7.8% of MainStreet Bancshares shares are held by company insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock will outperform the market over the long term.
This table compares the net margins, return on equity and return on assets of Orrstown Financial Services and MainStreet Bancshares.
|Net margins||Return on equity||return on assets|
|Orrstown Financial Services||25.31%||11.70%||1.08%|
MainStreet Bancshares beats Orrstown Financial Services on 8 out of 15 factors compared between the two stocks.
Orrstown Financial Services Company Profile (Get a rating)
Orrstown Financial Services, Inc. operates as a holding company for Orrstown Bank which provides commercial and trust banking services in the United States. The Company accepts a variety of deposits including checking, savings, term, demand and money market deposits. It also offers commercial loans, such as commercial real estate loans, equipment, buildings, working capital and other loans for commercial purposes, as well as industrial loans; consumer loans including home equity and other consumer loans, as well as home equity lines of credit; residential mortgages; acquisition and development loans; municipal loans; and installment and other loans. In addition, the company provides trustee, executor, administrator, guardian, managing agent, custodian and investment adviser services and other fiduciary services under the Orrstown name. Financial Advisors; and offers retail brokerage services through a third party broker/dealer arrangement. In addition, 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, and Baltimore City, Maryland. Orrstown Financial Services, Inc. was founded in 1919 and is based in Shippensburg, Pennsylvania.
MainStreet Bancshares Company Profile (Get a rating)
MainStreet Bancshares, Inc. operates as a bank holding company for MainStreet Bank which provides various banking products and services to individuals, small and medium businesses and professional services organizations. The company offers current, NOW, money market, savings and sweep accounts, as well as certificates of deposit; business and consumer verification, interest-bearing verification, business account analysis and other filing services; and cash management, wire transfers, check imaging, remote deposit capture and courier services. It also provides commercial loans, including government contract receivables, plant and equipment, general working capital, contract administration and acquisition loans; commercial real estate, building construction and residential real estate loans; and consumer loans including term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote check deposit; and Internet bill payment, online cash management, and online and mobile banking. As of March 18, 2022, it operated six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon and Washington DC, as well as 55,000 ATMs. MainStreet Bancshares, Inc. was incorporated in 2003 and is headquartered in Fairfax, Virginia.
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