Orrstown Financial Services (NASDAQ:ORRF – Get Free Report) and Citizens Financial Services (NASDAQ:CZFS – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Institutional & Insider Ownership
44.3% of Orrstown Financial Services shares are held by institutional investors. Comparatively, 22.5% of Citizens Financial Services shares are held by institutional investors. 5.3% of Orrstown Financial Services shares are held by company insiders. Comparatively, 6.3% of Citizens Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Orrstown Financial Services and Citizens Financial Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orrstown Financial Services | 0 | 1 | 3 | 0 | 2.75 |
| Citizens Financial Services | 0 | 0 | 1 | 0 | 3.00 |
Volatility & Risk
Orrstown Financial Services has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Citizens Financial Services has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Dividends
Orrstown Financial Services pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. Citizens Financial Services pays an annual dividend of $1.96 per share and has a dividend yield of 3.8%. Orrstown Financial Services pays out 23.9% of its earnings in the form of a dividend. Citizens Financial Services pays out 53.1% 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.
Profitability
This table compares Orrstown Financial Services and Citizens Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orrstown Financial Services | 18.99% | 14.31% | 1.19% |
| Citizens Financial Services | 11.63% | 10.43% | 0.97% |
Valuation and Earnings
This table compares Orrstown Financial Services and Citizens Financial Services’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orrstown Financial Services | $175.55 million | 1.92 | $35.66 million | $3.35 | 9.39 |
| Citizens Financial Services | $138.72 million | 1.77 | $17.81 million | $3.69 | 14.09 |
Orrstown Financial Services has higher revenue and earnings than Citizens Financial Services. Orrstown Financial Services is trading at a lower price-to-earnings ratio than Citizens Financial Services, indicating that it is currently the more affordable of the two stocks.
Summary
Orrstown Financial Services beats Citizens Financial Services on 10 of the 16 factors compared between the two stocks.
About Orrstown Financial Services
Orrstown Financial Services, Inc. operates as the financial holding company for Orrstown Bank that provides commercial banking and financial advisory services to retail, commercial, non-profit, and government clients in the United States. It accepts various deposits, including checking, savings, time, demand, and money market deposits, as well as certificates of deposit. The company also offers commercial loans, such as commercial real estate, equipment, construction, working capital, and other commercial purpose loans, as well as industrial loans; consumer loans, such as home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, it provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as other fiduciary services under the Orrstown Financial Advisors name; and retail brokerage services through a third-party broker/dealer arrangement. Further, the company offers fiduciary, investment advisory, insurance, and brokerage services. Orrstown Financial Services, Inc. was founded in 1919 and is headquartered in Shippensburg, Pennsylvania.
About Citizens Financial Services
Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.
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