Oak Ridge Financial Services (OTCMKTS:BKOR) vs. Old National Bancorp (NASDAQ:ONB) Financial Analysis

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

Analyst Recommendations

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

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

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

Institutional & Insider Ownership

83.7% of Old National Bancorp shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 1.1% of Old National Bancorp shares are held by company insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Old National Bancorp and Oak Ridge Financial Services”s top-line revenue, earnings per share (EPS) and valuation.

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

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.

Dividends

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

Volatility & Risk

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

Profitability

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

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

Summary

Old National Bancorp beats Oak Ridge Financial Services on 14 of the 17 factors compared between the two stocks.

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.

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.