Eastern Bankshares (NASDAQ:EBC) & Orrstown Financial Services (NASDAQ:ORRF) Head to Head Survey

Eastern Bankshares (NASDAQ:EBC) and Orrstown Financial Services (NASDAQ:ORRF) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

Eastern Bankshares has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Orrstown Financial Services has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Valuation & Earnings

This table compares Eastern Bankshares and Orrstown 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
Eastern Bankshares	$1.09 billion	3.69	$119.56 million	$0.25	76.16
Orrstown Financial Services	$286.37 million	2.44	$22.05 million	$3.78	9.49

Eastern Bankshares has higher revenue and earnings than Orrstown Financial Services. Orrstown Financial Services is trading at a lower price-to-earnings ratio than Eastern Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eastern Bankshares and Orrstown Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastern Bankshares	4.97%	7.94%	1.15%
Orrstown Financial Services	20.48%	14.39%	1.44%

Insider & Institutional Ownership

71.7% of Eastern Bankshares shares are owned by institutional investors. Comparatively, 44.3% of Orrstown Financial Services shares are owned by institutional investors. 1.1% of Eastern Bankshares shares are owned by insiders. Comparatively, 4.7% of Orrstown Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Eastern Bankshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.7%. Orrstown Financial Services pays an annual dividend of $1.08 per share and has a dividend yield of 3.0%. Eastern Bankshares pays out 208.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orrstown Financial Services pays out 28.6% of its earnings in the form of a dividend. Eastern Bankshares has raised its dividend for 5 consecutive years and Orrstown Financial Services has raised its dividend for 10 consecutive years. Orrstown Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Eastern Bankshares and Orrstown Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastern Bankshares	0	1	3	0	2.75
Orrstown Financial Services	0	2	4	0	2.67

Eastern Bankshares presently has a consensus price target of $21.50, suggesting a potential upside of 12.92%. Orrstown Financial Services has a consensus price target of $39.25, suggesting a potential upside of 9.36%. Given Eastern Bankshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe Eastern Bankshares is more favorable than Orrstown Financial Services.

Summary

Orrstown Financial Services beats Eastern Bankshares on 9 of the 17 factors compared between the two stocks.

About Eastern Bankshares

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. The company provides deposit accounts, interest checking accounts, money market accounts, savings accounts, and time certificates of deposit accounts. It also offers commercial and industrial, commercial real estate and construction, small business, residential real estate, and home equity loans; lines of credit; and other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides trust, financial planning and portfolio management, automated lock box collection, cash management, and account reconciliation services; personal, business, and employee benefits insurance products. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.

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.