Review of Oak Ridge Financial Services (OTCMKTS: BKOR) and United Bancshares (NASDAQ: UBOH)


Oak Ridge Financial Services (OTCMKTS:BKOR – Get Rating) and United Bancshares (NASDAQ:UBOH – Get Rating) are both small cap financials, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Risk and Volatility

Oak Ridge Financial Services has a beta of 0.63, which means its stock price is 37% less volatile than the S&P 500. In comparison, United Bancshares has a beta of 0.61, which means its stock price is 39% less volatile than the S&P 500.

Benefits and evaluation

This chart compares the gross revenue, earnings per share, and valuation of Oak Ridge Financial Services and United Bancshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Oak Ridge Financial Services $27.47 million 1.82 $7.76 million $2.76 6.71
United Bancshares $56.15 million 1.84 $13.58 million $3.58 8.80

United Bancshares has higher revenues and profits than Oak Ridge Financial Services. Oak Ridge Financial Services trades at a lower price-to-earnings ratio than United Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Oak Ridge Financial Services pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. United Bancshares pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. Oak Ridge Financial Services pays 10.1% of its earnings as a dividend. United Bancshares pays 23.5% 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. United Bancshares has increased its dividend for 2 consecutive years. United Bancshares is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of Oak Ridge Financial Services and United Bancshares.

Net margins Return on equity return on assets
Oak Ridge Financial Services 27.09% N / A N / A
United Bancshares 22.71% 10.65% 1.12%

Analyst Notes

This is a summary of the current ratings of Oak Ridge Financial Services and United Bancshares, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Oak Ridge Financial Services 0 0 0 0 N / A
United Bancshares 0 0 0 0 N / A

Institutional and insider ownership

3.1% of Oak Ridge Financial Services shares are held by institutional investors. By comparison, 33.2% of United Bancshares shares are held by institutional investors. 25.6% of the shares of Oak Ridge Financial Services are held by insiders. By comparison, 6.6% of United Bancshares shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Summary

United Bancshares beats Oak Ridge Financial Services on 10 out of 14 factors compared between the two stocks.

About Oak Ridge Financial Services (Get an evaluation)

Oak Ridge Financial Services, Inc. operates as a bank holding company for Bank of Oak Ridge which provides various personal and business banking products and services. It offers checking, savings, and money market accounts; discovered; auto, home equity, mortgage, business term and SBA business loans; commercial lines of credit; credit card; 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, renter, 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 United Bancshares (Get an evaluation)

United Bancshares, Inc. operates as a bank holding company for The Union Bank Company which provides various business and consumer banking services. The Company accepts various deposit products, such as checks, savings, demand deposits, money market deposits, term certificates and individual retirement accounts, as well as certificates of deposit. Its lending products include commercial and residential real estate, agriculture, trade and industry, home equity and various types of small business consumer and administrative loans. The company also offers wealth management, financial needs analysis, mutual fund, securities trading, annuity and life insurance services; and cash management, online and mobile banking, ATM, bill payment, safe rental, payment and other personalized services. It operates eighteen full-service banking centers and three loan origination offices in northwest and central Ohio. United Bancshares, Inc. was founded in 1904 and is headquartered in Columbus Grove, Ohio.



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Stephen V. Lee