Head to Head Survey: Orange County Bancorp (NASDAQ:OBT) and First Financial Bankshares (NASDAQ:FFIN)

First Financial Bankshares (NASDAQ:FFIN) and Orange County Bancorp (NASDAQ:OBT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares First Financial Bankshares and Orange County Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$636.07 million	9.31	$198.98 million	$1.45	28.57
Orange County Bancorp	$131.19 million	2.54	$29.48 million	$5.12	11.50

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

Analyst Recommendations

This is a breakdown of current ratings for First Financial Bankshares and Orange County Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	4	0	0	2.00
Orange County Bancorp	0	0	1	0	3.00

First Financial Bankshares presently has a consensus target price of $37.75, indicating a potential downside of 8.88%. Orange County Bancorp has a consensus target price of $66.00, indicating a potential upside of 12.11%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Orange County Bancorp is more favorable than First Financial Bankshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	28.76%	13.43%	1.56%
Orange County Bancorp	20.31%	16.37%	1.16%

Dividends

First Financial Bankshares pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Orange County Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. First Financial Bankshares pays out 49.7% of its earnings in the form of a dividend. Orange County Bancorp pays out 18.0% 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. First Financial Bankshares has increased its dividend for 13 consecutive years. First Financial Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

First Financial Bankshares has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Insider & Institutional Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are owned by institutional investors. 4.2% of First Financial Bankshares shares are owned by company insiders. Comparatively, 10.5% of Orange County Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

First Financial Bankshares beats Orange County Bancorp on 10 of the 17 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, 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.