Analyzing Origin Bancorp (NYSE:OBK) & First United (NASDAQ:FUNC)

First United (NASDAQ:FUNC – Get Free Report) and Origin Bancorp (NYSE:OBK – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Dividends

First United pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. Origin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. First United pays out 26.9% of its earnings in the form of a dividend. Origin Bancorp pays out 31.2% 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 United has increased its dividend for 6 consecutive years and Origin Bancorp has increased its dividend for 4 consecutive years. First United is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

First United has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for First United and Origin Bancorp, as provided by MarketBeat.

First United presently has a consensus target price of $49.50, indicating a potential upside of 13.79%. Origin Bancorp has a consensus target price of $58.00, indicating a potential upside of 8.41%. Given First United’s stronger consensus rating and higher probable upside, equities analysts clearly believe First United is more favorable than Origin Bancorp.

Earnings and Valuation

This table compares First United and Origin Bancorp”s revenue, earnings per share and valuation.

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

Insider & Institutional Ownership

33.3% of First United shares are held by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are held by institutional investors. 8.1% of First United shares are held by insiders. Comparatively, 5.3% of Origin Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares First United and Origin Bancorp’s net margins, return on equity and return on assets.

Summary

First United beats Origin Bancorp on 10 of the 17 factors compared between the two stocks.

About First United

(Get Free Report)

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. It offers various deposit products, which includes checking, savings, money market deposit, and regular and individual retirement accounts (IRAs), as well as certificates of deposit. The company loan portfolio includes commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings, such as restaurants and motels, retail buildings, and general purpose business space; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also offers access to multi-million-dollar certificates of deposit and the Intrafi cash service, including multi-million-dollar savings and demand deposits to municipalities, businesses, and consumers; and treasury management, cash sweep, and various checking services. In addition, the company provides trust services, which includes personal trust, investment agency accounts, charitable trusts, retirement accounts, including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning; and insurance products, brokerage services, and safe deposit and night depository facilities. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

About Origin Bancorp

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Origin Bancorp, Inc. operates as a bank holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients in Texas, Louisiana, and Mississippi. It offers noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and offers commercial real estate, construction and land development, consumer, residential real estate, commercial and industrial, mortgage warehouse, residential mortgage, and paycheck protection program loans. The company also offers personal and commercial property, and casualty insurance products; and Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit box, U.S. savings bonds, and automatic account transfer services; and treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. As of December 31, 2021, it operated 44 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.