HomeStreet (NASDAQ:HMST – Get Free Report) and Orange County Bancorp (NASDAQ:OBT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
74.7% of HomeStreet shares are held by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are held by institutional investors. 4.6% of HomeStreet 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, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares HomeStreet and Orange County Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HomeStreet | -5.44% | -3.40% | -0.19% |
| Orange County Bancorp | 20.31% | 16.37% | 1.16% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HomeStreet | $441.66 million | 0.44 | -$27.51 million | ($1.30) | -8.01 |
| Orange County Bancorp | $106.12 million | 2.80 | $29.48 million | $2.56 | 10.24 |
Orange County Bancorp has lower revenue, but higher earnings than HomeStreet. HomeStreet 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for HomeStreet and Orange County Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HomeStreet | 0 | 2 | 1 | 0 | 2.33 |
| Orange County Bancorp | 0 | 0 | 1 | 0 | 3.00 |
HomeStreet currently has a consensus price target of $14.33, indicating a potential upside of 37.69%. Orange County Bancorp has a consensus price target of $35.50, indicating a potential upside of 35.39%. Given HomeStreet’s higher probable upside, equities analysts clearly believe HomeStreet is more favorable than Orange County Bancorp.
Risk and Volatility
HomeStreet has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.
Summary
Orange County Bancorp beats HomeStreet on 9 of the 13 factors compared between the two stocks.
About HomeStreet
HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services in the Western United States. The company offers personal and business checking, savings, interest-bearing negotiable order of withdrawal, and money market accounts, as well as certificates of deposit; credit cards; insurance; and treasury management services. Its loan products include commercial real estate (CRE), multifamily, construction and land development, owner occupied CRE and commercial business loans; and single family, home equity, and other loans. In addition, the company offers online, mobile, and telephone banking. It serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company operates through branches and ATMs. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.
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.
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