Head to Head Comparison: Benchmark Bankshares (OTCMKTS:BMBN) and Oak Ridge Financial Services (OTCMKTS:BKOR)

Volatility and Risk

Benchmark Bankshares has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Institutional and Insider Ownership

3.2% of Benchmark Bankshares shares are owned by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are owned by institutional investors. 14.0% of Benchmark Bankshares shares are owned by insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Benchmark Bankshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. Oak Ridge Financial Services pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Benchmark Bankshares pays out 21.5% of its earnings in the form of a dividend. Oak Ridge Financial Services pays out 22.2% 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. Benchmark Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Benchmark Bankshares	23.80%	N/A	N/A
Oak Ridge Financial Services	18.00%	N/A	N/A

Earnings & Valuation

This table compares Benchmark Bankshares and Oak Ridge Financial Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Bankshares	$83.37 million	2.06	$19.84 million	$4.46	8.64
Oak Ridge Financial Services	$44.28 million	1.94	$8.01 million	$2.88	10.76

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

Summary

Benchmark Bankshares beats Oak Ridge Financial Services on 7 of the 11 factors compared between the two stocks.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, 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.