Analyzing Orange County Bancorp (NASDAQ:OBT) and Eagle Bancorp (NASDAQ:EGBN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orange County Bancorp	27.54%	16.09%	1.67%
Eagle Bancorp	-18.65%	-10.03%	-1.10%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange County Bancorp	0	1	3	0	2.75
Eagle Bancorp	1	2	1	1	2.40

Orange County Bancorp presently has a consensus price target of $37.00, suggesting a potential upside of 6.02%. Eagle Bancorp has a consensus price target of $27.50, suggesting a potential downside of 0.70%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Orange County Bancorp is more favorable than Eagle Bancorp.

Volatility and Risk

Orange County Bancorp has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Orange County Bancorp and Eagle Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange County Bancorp	$158.13 million	2.96	$41.61 million	$3.40	10.26
Eagle Bancorp	$634.26 million	1.33	-$138.05 million	($3.79)	-7.31

Orange County Bancorp has higher earnings, but lower revenue than Eagle Bancorp. Eagle Bancorp 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.

Institutional and Insider Ownership

42.6% of Orange County Bancorp shares are owned by institutional investors. Comparatively, 78.0% of Eagle Bancorp shares are owned by institutional investors. 8.2% of Orange County Bancorp shares are owned by insiders. Comparatively, 3.1% of Eagle Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Orange County Bancorp pays out 21.2% of its earnings in the form of a dividend. Eagle Bancorp pays out -1.1% 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.

Summary

Orange County Bancorp beats Eagle Bancorp on 12 of the 17 factors compared between the two stocks.

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.

About Eagle Bancorp

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.