Critical Comparison: CBTX (NASDAQ: CBTX) and Oak Ridge Financial Services (OTCMKTS: BKOR)


CBTX (NASDAQ:CBTX – Get Rating) and Oak Ridge Financial Services (OTCMKTS:BKOR – Get Rating) are both small cap financials, but which stock is superior? We’ll compare the two companies based on their risk strength, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

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

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
CBTX 0 0 0 0 N / A
Oak Ridge Financial Services 0 0 0 0 N / A

Volatility and risk

CBTX has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. In comparison, Oak Ridge Financial Services has a beta of 0.57, indicating that its stock price stock is 43% less volatile than the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of CBTX and Oak Ridge Financial Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
CBTX $148.36 million 5.44 $35.60 million $1.48 22.24
Oak Ridge Financial Services $27.47 million 1.89 $7.76 million $2.74 7.03

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

Insider and Institutional Ownership

42.4% of CBTX shares are held by institutional investors. By comparison, 3.1% of Oak Ridge Financial Services shares are held by institutional investors. 26.0% of the shares of CBTX are held by insiders of the company. By comparison, 25.6% of Oak Ridge Financial Services stock is held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of CBTX and Oak Ridge Financial Services.

Net margins Return on equity return on assets
CBTX 23.56% 6.60% 0.83%
Oak Ridge Financial Services 26.54% N / A N / A

Dividends

CBTX pays an annual dividend of $0.52 per share and has a dividend yield of 1.6%. Oak Ridge Financial Services pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. CBTX pays 35.1% of its profits as a dividend. Oak Ridge Financial Services pays 11.7% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. CBTX has increased its dividend for 1 consecutive years. Oak Ridge Financial Services is clearly the best dividend-paying stock, given its higher yield and lower payout ratio.

Summary

CBTX beats Oak Ridge Financial Services on 10 out of 14 factors compared between the two stocks.

About CBTX

(Get a rating)

CBTX, Inc. operates as a bank holding company for CommunityBank of Texas, National Association which provides commercial banking products and services to small and medium businesses and professionals in the United States. The company offers current, money market, savings and term accounts, as well as certificates of deposit; commercial and industrial, commercial real estate, construction and development, 1-4 family residential mortgage, multi-family housing, consumer and agricultural loans; and cash and online banking services. It operates through 34 banking locations, including 18 branches in Houston; 15 branches in Beaumont; and a branch in Dallas. The company was formerly known as CBFH, Inc. and changed its name to CBTX, Inc. in September 2017. CBTX, Inc. was incorporated in 2007 and is headquartered in Beaumont, Texas.

About Oak Ridge Financial Services

(Get a rating)

Oak Ridge Financial Services LogoOak Ridge Financial Services, Inc. operates as a bank holding company for Bank of Oak Ridge which provides various personal and business banking products and services. It offers checking, savings, and money market accounts; discovered; auto, home equity, mortgage, business term and SBA business loans; commercial lines of credit; credit card; 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, renter, 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.



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