Surrey Bancorp (OTCMKTS:SRYB) versus Origin Bancorp (NASDAQ:OBK) Head to Head Contrast

Surrey Bancorp (OTCMKTS:SRYB) and Origin Bancorp (NASDAQ:OBK) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

3.7% of Surrey Bancorp shares are held by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are held by institutional investors. 33.7% of Surrey Bancorp shares are held by insiders. Comparatively, 6.4% of Origin Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Surrey Bancorp pays out 31.6% of its earnings in the form of a dividend. Origin Bancorp pays out 26.8% 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.

Profitability

This table compares Surrey Bancorp and Origin Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrey Bancorp	37.97%	N/A	N/A
Origin Bancorp	12.34%	6.91%	0.77%

Valuation and Earnings

This table compares Surrey Bancorp and Origin Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrey Bancorp	$16.20 million	4.23	$5.10 million	$1.52	10.99
Origin Bancorp	$347.73 million	3.49	$76.49 million	$2.24	17.36

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

Volatility and Risk

Surrey Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Surrey Bancorp and Origin Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surrey Bancorp	0	0	0	0	0.00
Origin Bancorp	0	0	5	0	3.00

Origin Bancorp has a consensus price target of $43.20, suggesting a potential upside of 11.08%. Given Origin Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Origin Bancorp is more favorable than Surrey Bancorp.

Summary

Origin Bancorp beats Surrey Bancorp on 12 of the 16 factors compared between the two stocks.

About Surrey Bancorp

Surrey BanCorp engages in the provision of banking solutions through its subsidiaries, Surrey Bank & Trust . It offers checking accounts, savings, deposit services, mortgages, real estate loans, commercial credit products, business checking, and electronic banking. The company was founded on May 1, 2003 and is headquartered in Mount Airy, NC.

About Origin Bancorp

Origin Bancorp, Inc. operates as a bank holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, and retail clients in Texas, Louisiana, and Mississippi. It offers noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and offers commercial real estate, construction and land development, consumer, residential real estate, commercial and industrial, mortgage warehouse, and residential mortgage loans. The company also offers personal and commercial property, and casualty insurance products; and Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings bonds, and automatic account transfer services; and mobile and online banking, treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. The company was founded in 1912 and is headquartered in Ruston, Louisiana.