Head-To-Head Analysis: ConnectOne Bancorp (NASDAQ:CNOB) and Orange County Bancorp (NASDAQ:OBT)

ConnectOne Bancorp (NASDAQ:CNOB) and Orange County Bancorp (NASDAQ:OBT) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Risk and Volatility

ConnectOne Bancorp has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Dividends

ConnectOne Bancorp pays an annual dividend of $0.78 per share and has a dividend yield of 2.5%. Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. ConnectOne Bancorp pays out 45.1% 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. ConnectOne Bancorp has raised its dividend for 4 consecutive years. ConnectOne Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

67.7% of ConnectOne Bancorp shares are owned by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are owned by institutional investors. 5.2% of ConnectOne Bancorp 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ConnectOne Bancorp	13.21%	10.17%	1.04%
Orange County Bancorp	27.54%	16.09%	1.67%

Analyst Ratings

This is a summary of recent ratings and recommmendations for ConnectOne Bancorp and Orange County Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConnectOne Bancorp	0	0	3	2	3.40
Orange County Bancorp	0	1	3	0	2.75

ConnectOne Bancorp currently has a consensus price target of $33.25, indicating a potential upside of 8.45%. Orange County Bancorp has a consensus price target of $37.00, indicating a potential upside of 6.08%. Given ConnectOne Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe ConnectOne Bancorp is more favorable than Orange County Bancorp.

Valuation & Earnings

This table compares ConnectOne Bancorp and Orange County Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConnectOne Bancorp	$679.93 million	2.27	$80.44 million	$1.73	17.72
Orange County Bancorp	$158.13 million	2.96	$41.61 million	$3.40	10.26

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

Summary

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

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and South Florida market. The company offers personal and business checking, money market, and time and savings accounts; credit cards, wire transfers, safe deposit boxes, automated teller services and telephone, and internet and mobile banking. It provides retirement accounts, consumers and cash management services for business clients, including treasury direct, automated clearing house, remote deposit capture, and digital invoicing. In addition, the company offers consumer and commercial business loans, including lines of credit, commercial and residential mortgages, home equity and bridge loans, and other personal loans; commercial loans secured by collateral, such as business assets comprising accounts receivable, inventory and equipment, and mortgages filed on commercial and residential real estate, as well as cash balances and marketable securities. Further, it provides real estate loans, which includes loans secured by first liens on completed commercial properties, including multi-family properties, to purchase or refinance properties; residential mortgages, such as loans secured by first liens on 1-4 family and condominium; and cooperative residential real estate loans. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, 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.