First Trust California Municipal High income ETF (NASDAQ: FCAL) and Orrstown Financial Services (NASDAQ:ORRF) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Institutional and Insider Ownership
39.6% of Orrstown Financial Services shares are held by institutional investors. 5.4% of Orrstown Financial Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for First Trust California Municipal High income ETF and Orrstown Financial Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Trust California Municipal High income ETF||0||0||0||0||N/A|
|Orrstown Financial Services||0||1||1||0||2.50|
Orrstown Financial Services has a consensus price target of $28.00, indicating a potential upside of 9.37%. Given Orrstown Financial Services’ higher possible upside, analysts plainly believe Orrstown Financial Services is more favorable than First Trust California Municipal High income ETF.
Earnings and Valuation
This table compares First Trust California Municipal High income ETF and Orrstown Financial Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Trust California Municipal High income ETF||N/A||N/A||N/A||N/A||N/A|
|Orrstown Financial Services||$61.70 million||3.46||$6.62 million||$1.22||20.98|
Orrstown Financial Services has higher revenue and earnings than First Trust California Municipal High income ETF.
This table compares First Trust California Municipal High income ETF and Orrstown Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Trust California Municipal High income ETF||N/A||N/A||N/A|
|Orrstown Financial Services||14.58%||7.15%||0.68%|
First Trust California Municipal High income ETF pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Orrstown Financial Services pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Orrstown Financial Services pays out 39.3% of its earnings in the form of a dividend.
Orrstown Financial Services beats First Trust California Municipal High income ETF on 9 of the 10 factors compared between the two stocks.
About First Trust California Municipal High income ETF
First California Financial Group, Inc. is a bank holding company for its wholly owned subsidiary First California Bank (the Bank). The Bank is a full-service commercial bank. The Bank’s operations are primarily located within the areas commonly known as the 101 corridor stretching from the City of Ventura to Calabasas, California, the Moorpark-Simi Valley corridor, the western San Fernando Valley, the Tri-Cities area of Glendale-Burbank-Pasadena, the South Bay, the Inland Empire, north San Diego County, Century City and other parts of Los Angeles, Orange San Luis Obispo and Ventura Counties in Southern California. Its lending products include revolving lines of credit, term loans, commercial real estate loans, construction loans and consumer and home equity loans. In April 8, 2011, the Bank acquired the Electronic Payment Solutions division of Palm Desert National Bank. On February 18, 2011, the Bank acquired substantially all of the operations of San Luis Trust Bank.
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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