Woori Bank (NYSE:WF) and Orrstown Financial Services (NASDAQ:ORRF) Head-To-Head Survey

Orrstown Financial Services (NASDAQ:ORRF) and Woori Bank (NYSE:WF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Profitability

This table compares Orrstown Financial Services and Woori Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orrstown Financial Services	24.00%	14.46%	1.56%
Woori Bank	13.28%	8.18%	0.52%

Insider & Institutional Ownership

44.3% of Orrstown Financial Services shares are held by institutional investors. Comparatively, 3.4% of Woori Bank shares are held by institutional investors. 4.3% of Orrstown Financial Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Orrstown Financial Services and Woori Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orrstown Financial Services	$356.05 million	2.32	$80.86 million	$4.45	9.45
Woori Bank	$16.27 billion	1.11	$2.16 billion	$8.68	8.56

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

Volatility & Risk

Orrstown Financial Services has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Woori Bank has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Dividends

Orrstown Financial Services pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Woori Bank pays an annual dividend of $1.84 per share and has a dividend yield of 2.5%. Orrstown Financial Services pays out 27.0% of its earnings in the form of a dividend. Woori Bank pays out 21.2% 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. Orrstown Financial Services has increased 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 Recommendations

This is a summary of current recommendations and price targets for Orrstown Financial Services and Woori Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orrstown Financial Services	0	3	3	0	2.50
Woori Bank	0	1	1	0	2.50

Orrstown Financial Services presently has a consensus price target of $44.33, suggesting a potential upside of 5.43%. Given Orrstown Financial Services’ higher possible upside, research analysts plainly believe Orrstown Financial Services is more favorable than Woori Bank.

Summary

Orrstown Financial Services beats Woori Bank on 11 of the 16 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 Woori Bank

Woori Financial Group Inc., a financial holding company, operates as a commercial bank that provides a range of financial products and services to individuals, corporations, and small- and medium-sized enterprises in Korea. It operates through Banking, Credit Card, Capital, Investment Banking, and Others segments. The company offers savings, demand, installment, and time deposits; certificates of deposit; repurchase instruments; and working capital, facilities, general purpose household, mortgage, and home equity loans. It also provides debit and credit cards, cash services, card loans, and related services; lease financing; and securities operation, sale of financial instruments, project financing, and other related solutions. In addition, the company offers credit purchase, cash advance, credit card loans, foreign exchange services and dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment, investment trust products, bancassurance, and private equity funds. Further, it is involved in the real estate trust, system software development and maintenance, financing, credit information, securities investment and trading, derivatives trading, trust, asset securitization, investment and international banking, money transfer, and other services. Additionally, the company offers automated telephone, internet, and mobile banking services; and trust management, trustee, and custodian services. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.