Comparing Orange County Bancorp (NASDAQ:OBT) & Univest Corporation of Pennsylvania (NASDAQ:UVSP)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and Orange County Bancorp (NASDAQ:OBT) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Univest Corporation of Pennsylvania and Orange County Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	2	0	0	2.00
Orange County Bancorp	0	0	2	0	3.00

Univest Corporation of Pennsylvania presently has a consensus price target of $29.00, suggesting a potential upside of 3.13%. Orange County Bancorp has a consensus price target of $29.25, suggesting a potential upside of 22.59%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Orange County Bancorp is more favorable than Univest Corporation of Pennsylvania.

Volatility and Risk

Univest Corporation of Pennsylvania has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Valuation & Earnings

This table compares Univest Corporation of Pennsylvania and Orange County Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$500.41 million	1.62	$75.93 million	$2.74	10.26
Orange County Bancorp	$128.82 million	2.43	$27.88 million	$2.56	9.32

Univest Corporation of Pennsylvania has higher revenue and earnings than Orange County Bancorp. Orange County Bancorp is trading at a lower price-to-earnings ratio than Univest Corporation of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.88 per share and has a dividend yield of 3.1%. Orange County Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Univest Corporation of Pennsylvania pays out 32.1% of its earnings in the form of a dividend. Orange County Bancorp pays out 20.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years. Univest Corporation of Pennsylvania is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Univest Corporation of Pennsylvania and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	15.71%	8.92%	0.99%
Orange County Bancorp	19.84%	15.28%	1.17%

Institutional and Insider Ownership

75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are owned by institutional investors. 1.7% of Univest Corporation of Pennsylvania shares are owned by company insiders. Comparatively, 9.3% of Orange County Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Orange County Bancorp beats Univest Corporation of Pennsylvania on 9 of the 17 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Orange County Bancorp

Orange County Bancorp, Inc., through its subsidiaries, provides commercial and consumer banking products and services, and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments, and individuals. It accepts various deposits, including interest-bearing and noninterest-bearing demand accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company also offers commercial real estate loans, commercial and industrial loans, commercial real estate construction loans, residential real estate loans, home equity loans, and consumer loans. In addition, it provides traditional trust and administration, asset management, financial planning, and wealth management services. The company operates full-service branches and loan production office in Orange, Westchester, Rockland, and Bronx counties in New York. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.