Head-To-Head Comparison: South Plains Financial (NASDAQ:SPFI) vs. Origin Bancorp (NASDAQ:OBNK)

South Plains Financial (NASDAQ:SPFIGet Free Report) and Origin Bancorp (NASDAQ:OBNKGet Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Volatility & Risk

South Plains Financial has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Dividends

South Plains Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.9%. South Plains Financial pays out 15.0% of its earnings in the form of a dividend. Origin Bancorp pays out 18.7% 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. South Plains Financial has raised its dividend for 5 consecutive years and Origin Bancorp has raised its dividend for 4 consecutive years. South Plains Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares South Plains Financial and Origin Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
South Plains Financial $177.96 million 2.45 $62.74 million $3.74 7.11
Origin Bancorp $347.14 million 2.74 $87.71 million $3.21 9.62

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

Profitability

This table compares South Plains Financial and Origin Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
South Plains Financial 21.23% 11.19% 1.05%
Origin Bancorp 20.47% 10.45% 0.97%

Institutional and Insider Ownership

55.0% of South Plains Financial shares are owned by institutional investors. Comparatively, 47.2% of Origin Bancorp shares are owned by institutional investors. 25.4% of South Plains Financial shares are owned by insiders. Comparatively, 6.2% of Origin Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for South Plains Financial and Origin Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
South Plains Financial 0 0 2 0 3.00
Origin Bancorp 0 0 0 0 N/A

South Plains Financial currently has a consensus price target of $31.00, indicating a potential upside of 16.59%. Given South Plains Financial’s higher possible upside, equities analysts clearly believe South Plains Financial is more favorable than Origin Bancorp.

Summary

South Plains Financial beats Origin Bancorp on 11 of the 16 factors compared between the two stocks.

About South Plains Financial

(Get Free Report)

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.

About Origin Bancorp

(Get Free Report)

Origin Bancorp, Inc. is a bank holding company, which engages in the provision of financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients. The firm’s products and services include lending, deposits, mortgage banking, and insurance. It also offers other banking services such as Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings bonds, and automatic account transfers. The company was founded in 1991 and is headquartered in Ruston, LA.

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