Analyzing Origin Bancorp (NYSE:OBK) and Bar Harbor Bankshares (NYSE:BHB)

Origin Bancorp (NYSE:OBK) and Bar Harbor Bankshares (NYSE:BHB) are both small-cap financial services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. Bar Harbor Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 4.5%. Origin Bancorp pays out 26.8% of its earnings in the form of a dividend. Bar Harbor Bankshares pays out 49.6% 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. Bar Harbor Bankshares has raised its dividend for 22 consecutive years. Bar Harbor Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Origin Bancorp and Bar Harbor Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Origin Bancorp	11.98%	5.98%	0.72%
Bar Harbor Bankshares	N/A	N/A	N/A

Earnings and Valuation

This table compares Origin Bancorp and Bar Harbor Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Bancorp	$619.96 million	1.66	$76.49 million	$2.24	14.70
Bar Harbor Bankshares	$147.73 million	3.25	$43.04 million	$2.58	11.14

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

Volatility & Risk

Origin Bancorp has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Bar Harbor Bankshares has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Origin Bancorp and Bar Harbor Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Bancorp	0	1	5	0	2.83
Bar Harbor Bankshares	0	1	1	0	2.50

Origin Bancorp presently has a consensus price target of $43.20, indicating a potential upside of 31.19%. Bar Harbor Bankshares has a consensus price target of $35.00, indicating a potential upside of 21.74%. Given Origin Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Origin Bancorp is more favorable than Bar Harbor Bankshares.

Institutional and Insider Ownership

54.7% of Origin Bancorp shares are owned by institutional investors. Comparatively, 54.5% of Bar Harbor Bankshares shares are owned by institutional investors. 6.4% of Origin Bancorp shares are owned by company insiders. Comparatively, 2.6% of Bar Harbor Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Origin Bancorp beats Bar Harbor Bankshares on 13 of the 17 factors compared between the two stocks.

About Origin Bancorp

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.

About Bar Harbor Bankshares

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.