Heartland BancCorp (OTCMKTS:HLAN) and Oak Ridge Financial Services (OTCMKTS:BKOR) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Heartland BancCorp and Oak Ridge Financial Services’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heartland BancCorp | $59.26 million | 2.86 | $13.20 million | $6.45 | 13.18 |
| Oak Ridge Financial Services | $25.03 million | 1.40 | $4.25 million | N/A | N/A |
Heartland BancCorp has higher revenue and earnings than Oak Ridge Financial Services.
Dividends
Heartland BancCorp pays an annual dividend of $2.28 per share and has a dividend yield of 2.7%. Oak Ridge Financial Services pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. Heartland BancCorp pays out 35.3% of its earnings in the form of a dividend.
Insider and Institutional Ownership
1.9% of Heartland BancCorp shares are held by institutional investors. Comparatively, 8.8% of Oak Ridge Financial Services shares are held by institutional investors. 22.7% of Heartland BancCorp shares are held by company insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are held by company 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.
Analyst Ratings
This is a summary of current ratings and price targets for Heartland BancCorp and Oak Ridge Financial Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heartland BancCorp | 0 | 0 | 1 | 0 | 3.00 |
| Oak Ridge Financial Services | 0 | 0 | 0 | 0 | N/A |
Heartland BancCorp presently has a consensus target price of $75.00, suggesting a potential downside of 11.76%. Given Heartland BancCorp’s higher possible upside, equities research analysts clearly believe Heartland BancCorp is more favorable than Oak Ridge Financial Services.
Volatility and Risk
Heartland BancCorp has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Profitability
This table compares Heartland BancCorp and Oak Ridge Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heartland BancCorp | 18.76% | N/A | N/A |
| Oak Ridge Financial Services | 12.94% | N/A | N/A |
Summary
Heartland BancCorp beats Oak Ridge Financial Services on 9 of the 12 factors compared between the two stocks.
Heartland BancCorp Company Profile
Heartland BancCorp operates as the bank holding company for Heartland Bank that provides various commercial, small business, and consumer banking services; alternative investment services; and other financial products and services in Fairfield, Franklin, and Licking Counties of Central Ohio. The company offers personal and business checking and savings accounts. It also provides various lending solutions comprising home mortgage loans; personal loans, such as home equity and personal unsecured loans, as well as auto, boat, motorcycle, recreational vehicle, and trailer loans; commercial real estate and construction loans, small business administration loans, and working capital lines of credit and equipment financing; participation loans; financial solutions for various markets; and agribusiness lending solutions. In addition, the company offers credit and debit cards, wire transfers, night depository, safe deposit boxes, cashier's checks, notary services, overdraft protection, treasury management, retirement and education planning, wealth management, mobile wallet, and online banking services, as well as insurance products and services. As of May 15, 2020, it operated 19 full-service banking offices. The company was founded in 1911 and is based in Whitehall, Ohio.
Oak Ridge Financial Services Company Profile
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.