Origin Bancorp (NASDAQ:OBK) & Citizens Financial Group (NYSE:CFG) Head-To-Head Contrast

Origin Bancorp (NASDAQ:OBK) and Citizens Financial Group (NYSE:CFG) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Risk & Volatility

Origin Bancorp has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Citizens Financial Group has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Origin Bancorp	12.34%	6.91%	0.77%
Citizens Financial Group	12.21%	6.75%	0.68%

Insider & Institutional Ownership

54.7% of Origin Bancorp shares are held by institutional investors. Comparatively, 94.9% of Citizens Financial Group shares are held by institutional investors. 6.2% of Origin Bancorp shares are held by company insiders. Comparatively, 0.6% of Citizens Financial Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. Citizens Financial Group pays an annual dividend of $1.68 per share and has a dividend yield of 3.7%. Origin Bancorp pays out 24.4% of its earnings in the form of a dividend. Citizens Financial Group pays out 55.4% 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.

Earnings & Valuation

This table compares Origin Bancorp and Citizens Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Bancorp	$355.75 million	3.36	$76.49 million	$2.46	15.60
Citizens Financial Group	$12.36 billion	1.59	$1.51 billion	$3.03	14.81

Citizens Financial Group has higher revenue and earnings than Origin Bancorp. Citizens Financial Group 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 Ratings

This is a summary of current ratings and target prices for Origin Bancorp and Citizens Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Bancorp	0	1	3	1	3.00
Citizens Financial Group	0	8	9	1	2.61

Origin Bancorp presently has a consensus target price of $43.40, suggesting a potential upside of 13.09%. Citizens Financial Group has a consensus target price of $49.00, suggesting a potential upside of 9.22%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Origin Bancorp is more favorable than Citizens Financial Group.

Summary

Origin Bancorp beats Citizens Financial Group on 9 of the 16 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, 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, and residential mortgage 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 boxes, U.S. savings bonds, and automatic account transfer services; and mobile and online banking, treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

About Citizens Financial Group

Citizens Financial Group, Inc. operates as the bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves corporate banking, healthcare, technology, asset finance, franchise finance, leasing, asset-based lending, commercial real estate, mid-corporate, and private equity sponsor industries. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.