Contrasting Origin Bancorp (NYSE:OBK) and Mechanics Bancorp (NASDAQ:MCHB)

Origin Bancorp (NYSE:OBK) and Mechanics Bancorp (NASDAQ:MCHB) are both financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Risk & Volatility

Origin Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Mechanics Bancorp has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Origin Bancorp	10.23%	5.05%	0.62%
Mechanics Bancorp	-42.54%	-3.92%	-0.21%

Institutional & Insider Ownership

54.7% of Origin Bancorp shares are owned by institutional investors. Comparatively, 74.7% of Mechanics Bancorp shares are owned by institutional investors. 6.4% of Origin Bancorp shares are owned by insiders. Comparatively, 4.6% of Mechanics Bancorp shares are owned 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.

Valuation and Earnings

This table compares Origin Bancorp and Mechanics Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Bancorp	$619.96 million	1.82	$76.49 million	$1.91	19.05
Mechanics Bancorp	$594.41 million	5.78	-$144.34 million	($6.76)	-2.30

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Origin Bancorp and Mechanics Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Bancorp	0	1	5	0	2.83
Mechanics Bancorp	0	2	0	0	2.00

Origin Bancorp currently has a consensus price target of $42.80, indicating a potential upside of 17.60%. Mechanics Bancorp has a consensus price target of $14.50, indicating a potential downside of 6.69%. Given Origin Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Origin Bancorp is more favorable than Mechanics Bancorp.

Summary

Origin Bancorp beats Mechanics Bancorp on 11 of the 14 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 Mechanics Bancorp

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.