Bar Harbor Bankshares (NYSE:BHB – Get Free Report) and Origin Bancorp (NYSE:OBK – Get Free Report) are both small-cap financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
Bar Harbor Bankshares has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Bar Harbor Bankshares and Origin Bancorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Bar Harbor Bankshares | N/A | N/A | N/A |
Origin Bancorp | 11.98% | 5.98% | 0.72% |
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Bar Harbor Bankshares | $147.73 million | 3.25 | $43.04 million | $2.58 | 11.14 |
Origin Bancorp | $619.96 million | 1.66 | $76.49 million | $2.24 | 14.70 |
Origin Bancorp has higher revenue and earnings than Bar Harbor Bankshares. Bar Harbor Bankshares is trading at a lower price-to-earnings ratio than Origin Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
54.5% of Bar Harbor Bankshares shares are held by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are held by institutional investors. 2.6% of Bar Harbor Bankshares shares are held by company insiders. Comparatively, 6.4% of Origin Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Bar Harbor Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 4.5%. Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. Bar Harbor Bankshares pays out 49.6% 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. Bar Harbor Bankshares has increased its dividend for 22 consecutive years. Bar Harbor Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Bar Harbor Bankshares and Origin Bancorp, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Bar Harbor Bankshares | 0 | 1 | 1 | 0 | 2.50 |
Origin Bancorp | 0 | 1 | 5 | 0 | 2.83 |
Bar Harbor Bankshares currently has a consensus target price of $35.00, indicating a potential upside of 21.74%. Origin Bancorp has a consensus target price of $43.20, indicating a potential upside of 31.19%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Origin Bancorp is more favorable than Bar Harbor Bankshares.
Summary
Origin Bancorp beats Bar Harbor Bankshares on 13 of the 17 factors compared between the two stocks.
About Bar Harbor Bankshares
Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.
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, high net worth individuals, 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, residential mortgage, and paycheck protection program 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 box, U.S. savings bonds, and automatic account transfer services; and treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. As of December 31, 2021, it operated 44 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.
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