Contrasting Bancorp (NASDAQ:TBBK) and Oak Ridge Financial Services (OTCMKTS:BKOR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bancorp	31.40%	26.32%	2.70%
Oak Ridge Financial Services	15.78%	N/A	N/A

Insider & Institutional Ownership

96.2% of Bancorp shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 5.2% of 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$621.60 million	3.24	$192.30 million	$3.68	10.48
Oak Ridge Financial Services	$35.36 million	1.32	$5.74 million	$2.13	7.93

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

Analyst Ratings

This is a breakdown of recent recommendations for Bancorp and Oak Ridge Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	0	3	0	3.00
Oak Ridge Financial Services	0	0	0	0	N/A

Bancorp currently has a consensus price target of $50.33, indicating a potential upside of 30.50%. Given Bancorp’s higher possible upside, equities research analysts clearly believe Bancorp is more favorable than Oak Ridge Financial Services.

Risk & Volatility

Bancorp has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Summary

Bancorp beats Oak Ridge Financial Services on 12 of the 13 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

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.