Webster Financial (NYSE:WBS) vs. Oak Ridge Financial Services (OTCMKTS:BKOR) Head-To-Head Analysis

Webster Financial (NYSE:WBS) and Oak Ridge Financial Services (OTCMKTS:BKOR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

85.6% of Webster Financial shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 0.9% of Webster Financial shares are held by insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Webster Financial and Oak Ridge Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Webster Financial	$2.58 billion	3.51	$768.71 million	$4.37	12.08
Oak Ridge Financial Services	$41.04 million	1.41	$5.67 million	$2.06	10.19

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

Dividends

Webster Financial pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Oak Ridge Financial Services pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Webster Financial pays out 36.6% of its earnings in the form of a dividend. Oak Ridge Financial Services pays out 23.3% 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.

Volatility & Risk

Webster Financial has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Webster Financial and Oak Ridge Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Webster Financial	0	2	9	0	2.82
Oak Ridge Financial Services	0	0	0	0	0.00

Webster Financial presently has a consensus price target of $63.08, indicating a potential upside of 19.49%. Given Webster Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Webster Financial is more favorable than Oak Ridge Financial Services.

Profitability

This table compares Webster Financial and Oak Ridge Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Webster Financial	18.39%	10.82%	1.21%
Oak Ridge Financial Services	13.82%	N/A	N/A

Summary

Webster Financial beats Oak Ridge Financial Services on 14 of the 16 factors compared between the two stocks.

About Webster Financial

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking. The Commercial Banking segment offers commercial real estate and equipment financing, business banking, asset-based lending, and commercial services; public sector finance; mortgage warehouse financing; sponsor and specialty financing services; credit, deposit, and cash flow management services; and wealth management solutions to business owners and operators, including trust, asset management, financial planning, insurance, retirement, and investment products, as well as treasury management services comprising derivative, treasury, accounts payable, accounts receivable, and trade products and services. This segment also provides commercial services, such as accounts receivable factoring and trade financing, payroll funding, and business process outsourcing. The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefit services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. The Consumer Banking segment provides consumer deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers; and small business banking products, such as credit, deposit, and cash flow management products to businesses and professional service firms. The company offers online and mobile banking services. Webster Financial Corporation was founded in 1935 and is headquartered in Stamford, Connecticut.

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.