Head to Head Survey: Orrstown Financial Services (NASDAQ:ORRF) and First Resource Bancorp (OTCMKTS:FRSB)

Orrstown Financial Services (NASDAQ:ORRF) and First Resource Bancorp (OTCMKTS:FRSB) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Orrstown Financial Services has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, First Resource Bancorp has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Valuation & Earnings

This table compares Orrstown Financial Services and First Resource Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orrstown Financial Services	$286.37 million	2.37	$22.05 million	$3.78	9.22
First Resource Bancorp	$37.81 million	1.50	$5.31 million	$2.28	8.29

Orrstown Financial Services has higher revenue and earnings than First Resource Bancorp. First Resource Bancorp 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.

Profitability

This table compares Orrstown Financial Services and First Resource Bancorp’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%
First Resource Bancorp	16.31%	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Orrstown Financial Services and First Resource Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orrstown Financial Services	0	2	4	0	2.67
First Resource Bancorp	0	0	0	0	0.00

Orrstown Financial Services currently has a consensus price target of $39.25, suggesting a potential upside of 12.57%. Given Orrstown Financial Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Orrstown Financial Services is more favorable than First Resource Bancorp.

Institutional & Insider Ownership

44.3% of Orrstown Financial Services shares are held by institutional investors. 4.7% 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.

Summary

Orrstown Financial Services beats First Resource Bancorp on 14 of the 14 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 First Resource Bancorp

First Resource Bancorp, Inc. operates as the bank holding for First Resource Bank that provides personal and business banking products and services to businesses and families primarily in the southeastern area of Pennsylvania. The company's offers savings, checking, and money market accounts, as well as certificate deposit account registry services, insured cash sweeps, certificates of deposit, and IRAs. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity lines of credit, fixed payment home equity loans, residential construction loans, land loans, overdraft protection, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides personal financial statements; credit and debit cards; digital banking services; and cash management, positive pay, ACH origination, sweep/transfer of funds, ATM, over the counter checks, bill payment, wire transfer, signature guarantee/notary, safe deposit box, drive-up banking, night depository, foreign currency exchange, cashier's check, e-statements, and stop payments, as well as telephone, messaging and text, online, and mobile banking services. First Resource Bancorp, Inc. was founded in 2005 and is based in Exton, Pennsylvania.