Analyzing Bridge Capital Holdings (BBNK) & Orrstown Financial Services (ORRF)

Bridge Capital Holdings (NASDAQ: BBNK) and Orrstown Financial Services (NASDAQ:ORRF) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Earnings & Valuation

This table compares Bridge Capital Holdings and Orrstown Financial Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridge Capital Holdings N/A N/A N/A N/A N/A
Orrstown Financial Services $58.69 million 3.55 $8.84 million $1.06 23.59

Orrstown Financial Services has higher revenue and earnings than Bridge Capital Holdings.

Profitability

This table compares Bridge Capital Holdings and Orrstown Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Capital Holdings 16.16% 8.27% 0.85%
Orrstown Financial Services 13.25% 6.25% 0.61%

Insider and Institutional Ownership

38.0% of Orrstown Financial Services shares are owned by institutional investors. 5.4% of Orrstown Financial Services shares are owned by 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bridge Capital Holdings and Orrstown Financial Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Capital Holdings 0 0 0 0 N/A
Orrstown Financial Services 0 0 1 0 3.00

Orrstown Financial Services has a consensus target price of $28.00, indicating a potential upside of 12.00%. Given Orrstown Financial Services’ higher possible upside, analysts clearly believe Orrstown Financial Services is more favorable than Bridge Capital Holdings.

Dividends

Orrstown Financial Services pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Bridge Capital Holdings does not pay a dividend. Orrstown Financial Services pays out 37.7% of its earnings in the form of a dividend.

Summary

Orrstown Financial Services beats Bridge Capital Holdings on 6 of the 10 factors compared between the two stocks.

About Bridge Capital Holdings

Bridge Capital Holdings is the bank holding company for Bridge Bank, National Association (the Bank). The Bank’s lending solutions include working capital lines of credit, structured finance (asset-based lending and factoring), 7(a) and 504 Small Business Administration (SBA) loans, commercial real estate loans, sustainable energy project financing, growth capital loans, equipment financing, letters of credit and commercial credit cards. The Bank’s depository and corporate banking services include cash and treasury management solutions, interest-bearing term deposit accounts, checking accounts, Automated Clearing House (ACH) payment and wire solutions, fraud protection, remote deposit capture, courier services and online banking. The Bank’s international banking services include foreign exchange (FX payments and hedging), letters of credit, and import and export financing. The Bank provides banking services to businesses located across the San Francisco Bay Area.

About Orrstown Financial Services

Orrstown Financial Services, Inc. is the bank holding company for Orrstown Bank (the Bank). The Bank is engaged in commercial banking and trust business. The Company operates through Community Banking segment. The Bank’s activities involve accepting demand, time and savings deposits, and granting loans. The Bank grants commercial, residential, consumer and agribusiness loans in its market areas of Cumberland, Franklin, Lancaster and Perry Counties in Pennsylvania and in Washington County, Maryland. The Company’s securities available for sale include debt and equity instruments. Through its trust department, the Bank renders services as trustee, executor, administrator, managing agent, custodian, investment advisor and other fiduciary activities authorized by law under the trade name, Orrstown Financial Advisors (OFA). OFA offers retail brokerage services through a third-party broker or dealer arrangement with Cetera Advisor Networks LLC.

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