Analyzing Orange County Bancorp (NASDAQ:OBT) and First Bank (NASDAQ:FRBA)

First Bank (NASDAQ:FRBA) and Orange County Bancorp (NASDAQ:OBT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Dividends

First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. First Bank pays out 20.7% of its earnings in the form of a dividend. Orange County Bancorp pays out 21.7% 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. First Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

64.9% of First Bank shares are owned by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are owned by institutional investors. 9.3% of Orange County Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares First Bank and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bank	17.76%	10.32%	1.10%
Orange County Bancorp	26.32%	17.24%	1.60%

Volatility & Risk

First Bank has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for First Bank and Orange County Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	0	2	2	0	2.50
Orange County Bancorp	0	1	3	0	2.75

First Bank presently has a consensus target price of $18.25, indicating a potential upside of 5.49%. Orange County Bancorp has a consensus target price of $37.00, indicating a potential upside of 4.79%. Given First Bank’s higher probable upside, equities research analysts plainly believe First Bank is more favorable than Orange County Bancorp.

Valuation & Earnings

This table compares First Bank and Orange County Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$245.83 million	N/A	$43.66 million	$1.74	9.94
Orange County Bancorp	$158.13 million	2.99	$41.61 million	$3.32	10.64

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

Summary

Orange County Bancorp beats First Bank on 8 of the 15 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

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.