Contrasting Oak Ridge Financial Services (OTCMKTS:BKOR) & Bank of the James Financial Group (NASDAQ:BOTJ)

Oak Ridge Financial Services (OTCMKTS:BKOR) and Bank of the James Financial Group (NASDAQ:BOTJ) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Valuation and Earnings

This table compares Oak Ridge Financial Services and Bank of the James Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oak Ridge Financial Services	$44.28 million	1.94	$8.01 million	$2.88	10.76
Bank of the James Financial Group	$49.45 million	2.27	$9.02 million	$2.42	10.23

Bank of the James Financial Group has higher revenue and earnings than Oak Ridge Financial Services. Bank of the James Financial Group 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.

Dividends

Oak Ridge Financial Services pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Bank of the James Financial Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Oak Ridge Financial Services pays out 22.2% of its earnings in the form of a dividend. Bank of the James Financial Group pays out 16.5% 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. Bank of the James Financial Group has increased its dividend for 5 consecutive years.

Risk & Volatility

Oak Ridge Financial Services has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Bank of the James Financial Group has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Institutional and Insider Ownership

4.2% of Oak Ridge Financial Services shares are held by institutional investors. Comparatively, 18.5% of Bank of the James Financial Group shares are held by institutional investors. 25.6% of Oak Ridge Financial Services shares are held by company insiders. Comparatively, 11.9% of Bank of the James Financial Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Oak Ridge Financial Services and Bank of the James Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oak Ridge Financial Services	18.00%	N/A	N/A
Bank of the James Financial Group	17.17%	14.13%	1.06%

Analyst Ratings

This is a summary of current recommendations and price targets for Oak Ridge Financial Services and Bank of the James Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oak Ridge Financial Services	0	0	0	0	0.00
Bank of the James Financial Group	0	1	0	0	2.00

Summary

Bank of the James Financial Group beats Oak Ridge Financial Services on 10 of the 15 factors compared between the two stocks.

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.

About Bank of the James Financial Group

Bank of the James Financial Group, Inc. operates as the bank holding company for Bank of the James that provides general retail and commercial banking services to individuals, businesses, associations and organizations, and governmental authorities in Virginia, the United States. It offers checking, savings, individual retirement, and health care saving accounts, as well as other time deposits, including money market accounts and certificates of deposit. The company also provides loans to small- and medium-sized businesses for the purchases of equipment, facilities upgrades, inventory acquisition, and various working capital purposes; commercial and residential construction and development loans; commercial real estate mortgage loans; residential mortgage loans; and secured and unsecured consumer loans, such as lines of credit and overdraft lines of credit, as well as personal, automobile, installment, demand, and home equity loans for personal, family, or household purposes. In addition, it offers other banking services, including safe deposit boxes, traveler's checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, treasury management, and credit card merchant services. Further, the company provides mortgage banking; investment advisory services; securities brokerage and investment services; and telephone and internet banking services comprising online bill pay, as well as acts as an agent for insurance and annuity products. The company was founded in 1999 and is headquartered in Lynchburg, Virginia.