Orrstown Financial Services (NASDAQ:ORRF) vs. Univest Corporation of Pennsylvania (NASDAQ:UVSP) Head to Head Contrast

Orrstown Financial Services (NASDAQ:ORRF) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Volatility and Risk

Orrstown Financial Services has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

44.3% of Orrstown Financial Services shares are owned by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. 4.7% of Orrstown Financial Services shares are owned by company insiders. Comparatively, 1.7% of Univest Corporation of Pennsylvania shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Orrstown Financial Services and Univest Corporation of Pennsylvania, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orrstown Financial Services	0	2	3	0	2.60
Univest Corporation of Pennsylvania	0	4	1	0	2.20

Orrstown Financial Services currently has a consensus price target of $38.00, suggesting a potential upside of 7.47%. Univest Corporation of Pennsylvania has a consensus price target of $33.00, suggesting a potential upside of 1.20%. Given Orrstown Financial Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Orrstown Financial Services is more favorable than Univest Corporation of Pennsylvania.

Profitability

This table compares Orrstown Financial Services and Univest Corporation of Pennsylvania’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orrstown Financial Services	20.48%	14.39%	1.44%
Univest Corporation of Pennsylvania	16.94%	9.55%	1.07%

Earnings and Valuation

This table compares Orrstown Financial Services and Univest Corporation of Pennsylvania”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orrstown Financial Services	$246.01 million	2.80	$22.05 million	$3.78	9.35
Univest Corporation of Pennsylvania	$500.41 million	1.86	$75.93 million	$3.00	10.87

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

Dividends

Orrstown Financial Services pays an annual dividend of $1.08 per share and has a dividend yield of 3.1%. Univest Corporation of Pennsylvania pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Orrstown Financial Services pays out 28.6% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 29.3% 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. Orrstown Financial Services has raised its dividend for 10 consecutive years and Univest Corporation of Pennsylvania has raised its dividend for 1 consecutive years. Orrstown Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Orrstown Financial Services beats Univest Corporation of Pennsylvania on 13 of the 17 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 Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.