Financial Comparison: Orange County Bancorp (NASDAQ:OBT) versus TrustCo Bank Corp NY (NASDAQ:TRST)

TrustCo Bank Corp NY (NASDAQ:TRST) and Orange County Bancorp (NASDAQ:OBT) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

TrustCo Bank Corp NY has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Orange County Bancorp has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for TrustCo Bank Corp NY and Orange County Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	1	0	3.00
Orange County Bancorp	0	2	2	0	2.50

Orange County Bancorp has a consensus price target of $29.25, indicating a potential upside of 13.22%. Given Orange County Bancorp’s higher possible upside, analysts clearly believe Orange County Bancorp is more favorable than TrustCo Bank Corp NY.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. Orange County Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 2.0%. TrustCo Bank Corp NY pays out 50.8% of its earnings in the form of a dividend. Orange County Bancorp pays out 17.2% 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.

Profitability

This table compares TrustCo Bank Corp NY and Orange County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	20.74%	8.27%	0.90%
Orange County Bancorp	23.51%	15.98%	1.41%

Insider and Institutional Ownership

68.6% of TrustCo Bank Corp NY shares are owned by institutional investors. Comparatively, 42.5% of Orange County Bancorp shares are owned by institutional investors. 2.9% of TrustCo Bank Corp NY shares are owned by company insiders. Comparatively, 9.3% of Orange County Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares TrustCo Bank Corp NY and Orange County Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$183.06 million	4.08	$48.83 million	$2.99	13.55
Orange County Bancorp	$121.47 million	2.84	$27.88 million	$3.02	8.55

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

About TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.

About Orange County Bancorp

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