Head-To-Head Analysis: Orange County Bancorp (NASDAQ:OBT) vs. Cadence Bank (NYSE:CADE)

Cadence Bank (NYSE:CADE) and Orange County Bancorp (NASDAQ:OBT) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Dividends

Cadence Bank pays an annual dividend of $1.10 per share and has a dividend yield of 3.5%. Orange County Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.1%. Cadence Bank pays out 39.7% of its earnings in the form of a dividend. Orange County Bancorp pays out 21.1% 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. Cadence Bank has increased its dividend for 14 consecutive years. Cadence Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Cadence Bank has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Insider & Institutional Ownership

84.6% of Cadence Bank shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 2.6% of Cadence Bank shares are held by company insiders. Comparatively, 10.5% of Orange County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	18.03%	9.87%	1.07%
Orange County Bancorp	19.47%	15.51%	1.12%

Earnings & Valuation

This table compares Cadence Bank 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
Cadence Bank	$921.95 million	6.18	$523.60 million	$2.77	11.29
Orange County Bancorp	$107.63 million	2.59	$27.88 million	$2.47	9.94

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cadence Bank and Orange County Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Bank	0	4	7	0	2.64
Orange County Bancorp	0	0	1	0	3.00

Cadence Bank currently has a consensus price target of $38.50, suggesting a potential upside of 23.10%. Orange County Bancorp has a consensus price target of $35.50, suggesting a potential upside of 44.60%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Orange County Bancorp is more favorable than Cadence Bank.

Summary

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

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

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.