Financial Review: MVB Financial (NASDAQ:MVBF) vs. Orange County Bancorp (NASDAQ:OBT)

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

Dividends

MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. Orange County Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. MVB Financial pays out 47.9% of its earnings in the form of a dividend. Orange County Bancorp pays out 19.5% 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.

Insider and Institutional Ownership

52.7% of MVB Financial shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 11.1% of MVB Financial shares are held by insiders. Comparatively, 10.5% of Orange County Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for MVB Financial and Orange County Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MVB Financial	0	1	2	0	2.67
Orange County Bancorp	0	0	1	0	3.00

MVB Financial currently has a consensus target price of $25.33, suggesting a potential upside of 24.06%. Orange County Bancorp has a consensus target price of $71.00, suggesting a potential upside of 31.02%. Given Orange County Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Orange County Bancorp is more favorable than MVB Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MVB Financial	8.49%	6.29%	0.55%
Orange County Bancorp	20.31%	16.37%	1.16%

Earnings & Valuation

This table compares MVB Financial 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
MVB Financial	$143.80 million	1.84	$31.23 million	$1.42	14.38
Orange County Bancorp	$106.12 million	2.90	$29.48 million	$5.12	10.58

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

Risk and Volatility

MVB Financial has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

About MVB Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

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.