Reviewing Orange County Bancorp (NASDAQ:OBT) and First Mid Bancshares (NASDAQ:FMBH)

First Mid Bancshares (NASDAQ:FMBH – Get Free Report) and Orange County Bancorp (NASDAQ:OBT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Institutional & Insider Ownership

47.6% of First Mid Bancshares shares are owned by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are owned by institutional investors. 6.0% of First Mid Bancshares shares are owned by company insiders. Comparatively, 8.2% of Orange County Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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Earnings and Valuation

This table compares First Mid Bancshares and Orange County Bancorp”s top-line revenue, earnings per share and valuation.

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

Dividends

First Mid Bancshares pays an annual dividend of $1.00 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 Mid Bancshares pays out 25.2% of its earnings in the form of a dividend. Orange County Bancorp pays out 21.2% 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 Mid Bancshares has raised its dividend for 3 consecutive years. First Mid Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations for First Mid Bancshares and Orange County Bancorp, as provided by MarketBeat.

First Mid Bancshares presently has a consensus price target of $49.50, indicating a potential upside of 4.28%. Orange County Bancorp has a consensus price target of $37.00, indicating a potential upside of 0.30%. Given First Mid Bancshares’ higher possible upside, equities research analysts plainly believe First Mid Bancshares is more favorable than Orange County Bancorp.

Profitability

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

Risk and Volatility

First Mid Bancshares has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

First Mid Bancshares beats Orange County Bancorp on 9 of the 16 factors compared between the two stocks.

About First Mid Bancshares

(Get Free Report)

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company’s loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans, as well as construction and land development, 1-4 family residential properties, and multifamily residential properties loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; employee benefit services for businesses; and farm management and brokerage services. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.

About Orange County Bancorp

(Get Free Report)

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.

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