Critical Review: Orange County Bancorp (NASDAQ:OBT) and ACNB (NASDAQ:ACNB)

ACNB (NASDAQ:ACNBGet Free Report) and Orange County Bancorp (NASDAQ:OBTGet Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
ACNB 27.53% 12.12% 1.32%
Orange County Bancorp 22.47% 22.76% 1.36%

Volatility and Risk

ACNB has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

32.3% of ACNB shares are owned by institutional investors. Comparatively, 42.6% of Orange County Bancorp shares are owned by institutional investors. 3.3% of ACNB shares are owned by company insiders. Comparatively, 10.6% of Orange County Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

ACNB pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Orange County Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. ACNB pays out 32.3% of its earnings in the form of a dividend. Orange County Bancorp pays out 17.6% 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. ACNB has raised its dividend for 3 consecutive years. ACNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for ACNB and Orange County Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACNB 0 3 0 0 2.00
Orange County Bancorp 0 0 1 0 3.00

ACNB presently has a consensus price target of $42.33, suggesting a potential upside of 18.25%. Orange County Bancorp has a consensus price target of $51.00, suggesting a potential upside of 6.83%. Given ACNB’s higher probable upside, equities research analysts plainly believe ACNB is more favorable than Orange County Bancorp.

Valuation & Earnings

This table compares ACNB and Orange County Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ACNB $106.43 million 2.86 $31.69 million $3.72 9.62
Orange County Bancorp $131.19 million 2.06 $29.48 million $5.23 9.13

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

Summary

Orange County Bancorp beats ACNB on 9 of the 17 factors compared between the two stocks.

About ACNB

(Get Free Report)

ACNB Corporation, a financial holding company, offers banking, insurance, and financial services to individual, business, and government customers in the United States. The company provides checking, savings, and money market deposit accounts, as well as time deposits and debit cards. It also offers commercial lending products, such as commercial mortgages, real estate development and construction loans, accounts receivable and inventory financing, and agricultural and governmental loans; consumer lending products, including home equity loans and lines of credit, automobile and recreational vehicle loans, manufactured housing loans, and personal lines of credit; and mortgage lending programs include personal residential mortgages, and residential construction and investment mortgage loans. In addition, the company provides other services that are related to testamentary trusts, life insurance trusts, charitable remainder trusts, guardianships, powers of attorney, custodial accounts, and investment management and advisory accounts; and retail brokerage services. Further, it acts as a trustee to invest in, protect, manage, and distribute financial assets. Additionally, the company offers property and casualty, health, life, and disability insurance products to commercial and personal clients; and online, telephone, and mobile banking, as well as automated teller machine services. ACNB Corporation was founded in 1857 and is headquartered in Gettysburg, Pennsylvania.

About Orange County Bancorp

(Get Free Report)

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 affluent individuals. It accepts various deposit products, 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 in Orange, Westchester, Rockland, and Bronx counties in New York, as well as loan production office. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.

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