Citizens Bancshares Co. (GA) (CZBS) versus Orrstown Financial Services (ORRF) Financial Review

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Orrstown Financial Services (NASDAQ:ORRF) and Citizens Bancshares Co. (GA) (OTCMKTS:CZBS) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Profitability

This table compares Orrstown Financial Services and Citizens Bancshares Co. (GA)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orrstown Financial Services 14.77% 10.40% 0.90%
Citizens Bancshares Co. (GA) N/A N/A N/A

Earnings & Valuation

This table compares Orrstown Financial Services and Citizens Bancshares Co. (GA)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orrstown Financial Services $86.69 million 2.14 $12.81 million $1.81 10.85
Citizens Bancshares Co. (GA) N/A N/A N/A N/A N/A

Orrstown Financial Services has higher revenue and earnings than Citizens Bancshares Co. (GA).

Institutional and Insider Ownership

38.9% of Orrstown Financial Services shares are held by institutional investors. 5.7% of Orrstown Financial Services shares are held by company insiders. Comparatively, 10.2% of Citizens Bancshares Co. (GA) shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Orrstown Financial Services has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Citizens Bancshares Co. (GA) has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Dividends

Orrstown Financial Services pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Citizens Bancshares Co. (GA) pays an annual dividend of $0.25 per share and has a dividend yield of 2.3%. Orrstown Financial Services pays out 33.1% of its earnings in the form of a dividend. Orrstown Financial Services has raised its dividend for 3 consecutive years. Orrstown Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Orrstown Financial Services and Citizens Bancshares Co. (GA), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orrstown Financial Services 0 0 3 0 3.00
Citizens Bancshares Co. (GA) 0 0 0 0 N/A

Orrstown Financial Services currently has a consensus price target of $29.00, suggesting a potential upside of 47.66%. Given Orrstown Financial Services’ higher probable upside, equities research analysts plainly believe Orrstown Financial Services is more favorable than Citizens Bancshares Co. (GA).

Summary

Orrstown Financial Services beats Citizens Bancshares Co. (GA) on 10 of the 12 factors compared between the two stocks.

About Orrstown Financial Services

Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, working capital, and other commercial purpose loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; agribusiness loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, the company provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as provides other fiduciary services under the Orrstown Financial Advisors name; and offers retail brokerage services through a third-party broker/dealer arrangement. Further, it offers investment advisory services through an office in Lancaster County, Pennsylvania. The company provides its banking and bank-related services through branches located in Berks, Cumberland, Dauphin, Franklin, Lancaster, and Perry counties of Pennsylvania, as well as Washington County, Maryland. Orrstown Financial Services, Inc. was founded in 1919 and is headquartered in Shippensburg, Pennsylvania.

About Citizens Bancshares Co. (GA)

Citizens Bancshares Corporation operates as the holding company for Citizens Trust Bank that provides various commercial banking services to individual and corporate customers. The company offers checking and savings accounts; and demand and money market deposits. It also provides personal loans, including auto loans, personal line of credit, secured line of credit, and home equity lines; residential mortgage loans; commercial loans, such as lines of credit, vehicle/equipment loans, commercial mortgages, and refinance services; and financial and agricultural loans, installment loans, commercial real estate loans, single-family residential loans, and construction and development loans, as well as residential and commercial bank owned assets. In addition, the company offers investment accounts, such as sweep, commercial money market, and individual retirement accounts; certificates of deposit; and certificate of deposit account registry services. Further, it provides term life, whole life, finance expense, and disability insurance; merchant services comprising point of sale terminal, credit card and debit card processing, electronic benefits transfer, gift card, and Internet shopping cart services; cash management services; and credit cards. Additionally, the company offers mobile banking, online banking/bill pay, and check recorder services. It operates seven full-service branches in metropolitan Atlanta; one full-service branch in Columbus, Georgia; one full-service branch in Birmingham, Alabama; and one full-service branch in Eutaw, Alabama. The company was founded in 1921 and is headquartered in Atlanta, Georgia.

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