Franklin Financial Services (NASDAQ:FRAF – Get Free Report) and Orion Digital (NASDAQ:ORIO – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Profitability
This table compares Franklin Financial Services and Orion Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Financial Services | 18.20% | 14.00% | 1.08% |
| Orion Digital | -24.49% | -6.17% | -2.56% |
Volatility and Risk
Franklin Financial Services has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Orion Digital has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Financial Services | 0 | 1 | 1 | 0 | 2.50 |
| Orion Digital | 1 | 1 | 0 | 0 | 1.50 |
Franklin Financial Services currently has a consensus target price of $68.00, suggesting a potential upside of 7.39%. Given Franklin Financial Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Franklin Financial Services is more favorable than Orion Digital.
Institutional and Insider Ownership
24.8% of Franklin Financial Services shares are owned by institutional investors. Comparatively, 14.8% of Orion Digital shares are owned by institutional investors. 5.9% of Franklin Financial Services shares are owned by insiders. Comparatively, 12.3% of Orion Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Franklin Financial Services and Orion Digital”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Financial Services | $133.55 million | 2.13 | $21.23 million | $5.49 | 11.53 |
| Orion Digital | $49.11 million | 0.49 | -$6.11 million | ($0.50) | -2.02 |
Franklin Financial Services has higher revenue and earnings than Orion Digital. Orion Digital is trading at a lower price-to-earnings ratio than Franklin Financial Services, indicating that it is currently the more affordable of the two stocks.
Summary
Franklin Financial Services beats Orion Digital on 11 of the 13 factors compared between the two stocks.
About Franklin Financial Services
Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.
About Orion Digital
Mogo Inc. operates as a financial technology company in Canada and internationally. The company provides digital solutions to the consumers to get in control of their financial health. It offers Mogo app to access a digital spending account with Mogo Visa Platinum Prepaid Card; MogoCrypto that enables the buying and selling of bitcoin; MogoProtect, a free ID fraud protection and monthly credit score monitoring; MogoMortgage, a digital mortgage experience; and MogoMoney that provides access to personal loans. The company also offers Mogo Trade, a free stock trading platform with real-time stock quotes and funding; and Mogo Ventures to manage its existing investments in strategic partners and companies. In addition, it operates Carta, a digital payments software platform that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual, and tokenized cards, as well as payment switching and routing services. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
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