Southside Bancshares (NASDAQ:SBSI – Get Free Report) and Orange County Bancorp (NASDAQ:OBT – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
55.7% of Southside Bancshares shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 6.0% of Southside Bancshares shares are held by company insiders. Comparatively, 9.3% of Orange County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Southside Bancshares and Orange County Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southside Bancshares | 0 | 3 | 0 | 0 | 2.00 |
| Orange County Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Profitability
This table compares Southside Bancshares and Orange County Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southside Bancshares | 19.40% | 11.10% | 1.06% |
| Orange County Bancorp | 19.47% | 15.51% | 1.12% |
Risk & Volatility
Southside Bancshares has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Valuation and Earnings
This table compares Southside Bancshares 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 | |
| Southside Bancshares | $258.81 million | 3.38 | $88.49 million | $2.91 | 9.95 |
| Orange County Bancorp | $108.43 million | 2.71 | $27.88 million | $2.41 | 10.71 |
Southside Bancshares has higher revenue and earnings than Orange County Bancorp. Southside Bancshares 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.
Dividends
Southside Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 5.0%. Orange County Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.0%. Southside Bancshares pays out 49.5% of its earnings in the form of a dividend. Orange County Bancorp pays out 21.6% 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. Southside Bancshares has raised its dividend for 30 consecutive years. Southside Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Orange County Bancorp beats Southside Bancshares on 9 of the 17 factors compared between the two stocks.
About Southside Bancshares
Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposits. The company’s loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth management and trust services consisting of investment management, administration of irrevocable, revocable, and testamentary trusts, estate administration, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. In addition, the company provides retirement and employee benefit accounts, including plans and profit sharing plans; and telephone, internet, and mobile banking services. The company offers various banking services through branches, drive-thru facilities, automated teller machines, and interactive teller machines. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.
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.
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