Bank OZK (NASDAQ:OZK) vs. Orange County Bancorp (NASDAQ:OBT) Head to Head Analysis

Bank OZK (NASDAQ:OZKGet Free Report) and Orange County Bancorp (NASDAQ:OBTGet Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

84.8% of Bank OZK shares are held by institutional investors. Comparatively, 45.1% of Orange County Bancorp shares are held by institutional investors. 6.7% of Bank OZK shares are held by insiders. Comparatively, 10.6% of Orange County Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Bank OZK and Orange County Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank OZK $2.25 billion 2.45 $690.78 million $5.87 8.30
Orange County Bancorp $96.22 million 2.94 $24.36 million $5.40 9.27

Bank OZK has higher revenue and earnings than Orange County Bancorp. Bank OZK 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Bank OZK 30.69% 15.13% 2.18%
Orange County Bancorp 24.42% 23.75% 1.42%

Volatility & Risk

Bank OZK has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Bank OZK and Orange County Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank OZK 1 5 2 0 2.13
Orange County Bancorp 0 0 1 0 3.00

Bank OZK currently has a consensus price target of $46.75, indicating a potential downside of 4.02%. Orange County Bancorp has a consensus price target of $51.00, indicating a potential upside of 1.88%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Orange County Bancorp is more favorable than Bank OZK.

Dividends

Bank OZK pays an annual dividend of $1.52 per share and has a dividend yield of 3.1%. Orange County Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. Bank OZK pays out 25.9% of its earnings in the form of a dividend. Orange County Bancorp pays out 17.0% 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. Bank OZK has raised its dividend for 28 consecutive years. Bank OZK is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Bank OZK beats Orange County Bancorp on 10 of the 17 factors compared between the two stocks.

About Bank OZK

(Get Free Report)

Bank OZK provides various retail and commercial banking services. The company accepts various deposit products, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. It also offers real estate, consumer and business purpose, indirect recreational vehicle and marine, commercial and industrial, government guaranteed, agricultural equipment, small business, lines of credit, homebuilder, and affordable housing loans; business aviation and subscription financing services; and mortgage and other lending products. In addition, the company provides trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts, as well as corporate trust services, including trustee, paying agent and registered transfer agent services, and other related services. Further, it offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, merchant and commercial card, and other services, as well as zero balance and investment sweep accounts. Additionally, the company provides ATMs; telephone, online, and mobile banking services; debit and credit cards; safe deposit boxes; and other products and services, as well as processes merchant debit and credit card transactions. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018. Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

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 affluent individuals. It accepts various deposit products, 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 in Orange, Westchester, Rockland, and Bronx counties in New York, as well as loan production office. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.

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