Head to Head Survey: Origin Bancorp (OBNK) & First Bank (FRBA)

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

Institutional and Insider Ownership

45.1% of Origin Bancorp shares are held by institutional investors. Comparatively, 50.0% of First Bank shares are held by institutional investors. 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.

Dividends

Origin Bancorp pays an annual dividend of $0.13 per share and has a dividend yield of 0.4%. First Bank pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Origin Bancorp pays out 5.9% of its earnings in the form of a dividend. First Bank pays out 12.5% 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 Origin Bancorp and First Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Origin Bancorp 22.50% 10.95% 1.17%
First Bank 23.09% N/A N/A

Valuation & Earnings

This table compares Origin Bancorp and First Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Origin Bancorp $229.34 million 3.51 $51.60 million $2.20 15.49
First Bank $76.19 million 2.54 $17.59 million $0.96 11.58

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Origin Bancorp and First Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Origin Bancorp 0 1 1 1 3.00
First Bank 0 0 0 0 N/A

Origin Bancorp currently has a consensus price target of $43.00, suggesting a potential upside of 26.17%. Given Origin Bancorp’s higher probable upside, equities analysts plainly believe Origin Bancorp is more favorable than First Bank.

Summary

Origin Bancorp beats First Bank on 11 of the 14 factors compared between the two stocks.

Origin Bancorp Company Profile

Origin Bancorp, Inc. operates as the 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 Louisiana, Texas, and Mississippi. It offers accepts noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and grants single and multi-family real estate, residential construction, and commercial building loans, as well as loans to small and medium-sized businesses, and consumers. The company also offers personal and commercial property, and casualty insurance products; products and services, including Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings, bonds and automatic account transfers; and mortgage origination and servicing. As of April 10, 2018, it operated approximately 40 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

First Bank Company Profile

First Bank provides various banking products and services to individuals, businesses, and governmental entities. 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. Its loan products include commercial and industrial loans; 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 loans, which consist of auto, personal, and traditional installment loans, as well as other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; and cash management services. As of December 31, 2017, it operated 14 full-service branches in Cranbury, Denville, Ewing, Flemington, Hamilton, Lawrence, Randolph, Somerset, and Williamstown, New Jersey; and Doylestown, Bensalem, Warminster, Levittown, and Trevose, Pennsylvania. First Bank was founded in 2007 and is headquartered in Hamilton, New Jersey.

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