C&F Financial (NASDAQ:CFFI) & Oak Ridge Financial Services (OTCMKTS:BKOR) Head-To-Head Contrast

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Oak Ridge Financial Services and C&F Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oak Ridge Financial Services	0	0	0	0	0.00
C&F Financial	0	1	0	0	2.00

Volatility & Risk

Oak Ridge Financial Services has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, C&F Financial has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Dividends

Oak Ridge Financial Services pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. C&F Financial pays an annual dividend of $1.84 per share and has a dividend yield of 2.4%. Oak Ridge Financial Services pays out 21.3% of its earnings in the form of a dividend. C&F Financial 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. C&F Financial has increased its dividend for 1 consecutive years. C&F Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

4.2% of Oak Ridge Financial Services shares are held by institutional investors. Comparatively, 37.2% of C&F Financial shares are held by institutional investors. 25.6% of Oak Ridge Financial Services shares are held by insiders. Comparatively, 6.3% of C&F Financial shares are held 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.

Valuation & Earnings

This table compares Oak Ridge Financial Services and C&F Financial”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	$41.04 million	1.99	$5.67 million	$2.63	11.33
C&F Financial	$186.13 million	1.31	$19.83 million	$8.28	9.09

C&F Financial has higher revenue and earnings than Oak Ridge Financial Services. C&F Financial 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.

Profitability

This table compares Oak Ridge Financial Services and C&F Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oak Ridge Financial Services	16.38%	N/A	N/A
C&F Financial	14.43%	11.03%	1.01%

Summary

C&F Financial 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 C&F Financial

C&F Financial Corp. is a bank holding company, which engages in the provision of banking services to individuals and businesses. It operates through the following segments: Community Banking, Mortgage Banking and Consumer Finance. The Community Banking segment provides checking and savings deposit accounts, business, real estate, development, mortgage, home equity, and installment loans. The Mortgage Banking segment offers ancillary mortgage loan origination services for loan settlement and residential appraisals. The Consumer Finance segment consists of automobile financing through lending programs that are designed to serve customers in the non-prime market who have limited access to traditional automobile financing. The company was founded on March 8, 1994 and is headquartered in Toano, VA.