Critical Survey: John Marshall Bancorp (NASDAQ:JMSB) and Oak Ridge Financial Services (OTCMKTS:BKOR)

John Marshall Bancorp (NASDAQ:JMSB) and Oak Ridge Financial Services (OTCMKTS:BKOR) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

John Marshall Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.5%. Oak Ridge Financial Services pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. John Marshall Bancorp pays out 21.3% of its earnings in the form of a dividend. Oak Ridge Financial Services pays out 21.3% 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.

Institutional & Insider Ownership

39.1% of John Marshall Bancorp shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 12.1% of John Marshall Bancorp shares are held by insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Marshall Bancorp	0	1	1	0	2.50
Oak Ridge Financial Services	0	0	0	0	0.00

John Marshall Bancorp presently has a consensus target price of $22.00, indicating a potential upside of 9.84%. Given John Marshall Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe John Marshall Bancorp is more favorable than Oak Ridge Financial Services.

Risk & Volatility

John Marshall Bancorp has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
John Marshall Bancorp	17.62%	7.93%	0.88%
Oak Ridge Financial Services	16.38%	N/A	N/A

Valuation & Earnings

This table compares John Marshall Bancorp and Oak Ridge Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Marshall Bancorp	$112.40 million	2.53	$17.12 million	$1.41	14.21
Oak Ridge Financial Services	$41.04 million	1.94	$5.67 million	$2.63	11.03

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

Summary

John Marshall Bancorp beats Oak Ridge Financial Services on 13 of the 16 factors compared between the two stocks.

About John Marshall Bancorp

John Marshall Bancorp, Inc. operates as the bank holding company for John Marshall Bank that provides banking products and financial services. The company accepts checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. It offers residential and commercial construction and development loans, commercial term, mortgage, commercial real estate, industrial loans, and other commercial lines of credit; debit and credit cards; and treasury and cash management, investment, business and personal insurance, remote deposit capture, deposit sweep and online and mobile banking services. The company serves small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. The company was founded in 2005 and is headquartered in Reston, Virginia.

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.