Origin Bancorp (NYSE:OBK) versus Midland States Bancorp (NASDAQ:MSBI) Financial Contrast

Midland States Bancorp (NASDAQ:MSBI) and Origin Bancorp (NYSE:OBK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Midland States Bancorp	9.40%	13.32%	0.92%
Origin Bancorp	16.26%	7.97%	1.00%

Insider and Institutional Ownership

60.9% of Midland States Bancorp shares are owned by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are owned by institutional investors. 8.6% of Midland States Bancorp shares are owned by insiders. Comparatively, 5.3% of Origin Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Midland States Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 3.9%. Origin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Midland States Bancorp pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Origin Bancorp pays out 31.2% of its earnings in the form of a dividend. Midland States Bancorp has increased its dividend for 1 consecutive years and Origin Bancorp has increased its dividend for 4 consecutive years.

Volatility & Risk

Midland States Bancorp has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Midland States Bancorp and Origin Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Midland States Bancorp	0	4	0	1	2.40
Origin Bancorp	0	2	5	0	2.71

Midland States Bancorp presently has a consensus target price of $31.12, indicating a potential downside of 6.95%. Origin Bancorp has a consensus target price of $58.00, indicating a potential upside of 6.73%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Origin Bancorp is more favorable than Midland States Bancorp.

Valuation & Earnings

This table compares Midland States Bancorp and Origin Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Midland States Bancorp	$476.05 million	1.46	-$124.28 million	$1.56	21.44
Origin Bancorp	$597.80 million	2.80	$75.20 million	$3.20	16.98

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

Summary

Origin Bancorp beats Midland States Bancorp on 12 of the 18 factors compared between the two stocks.

About Midland States Bancorp

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company provides a range of financial products and services to consumers and businesses, including commercial loans to finance agricultural equipment and production; and commercial real estate loans for owner occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities. In addition, it offers construction and land development loans, such as real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which includes first and second mortgage loans, and home equity lines of credit consisting of loans secured by first or second mortgages on primarily owner occupied primary residences. The company also provides consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries. Further, it offers merchant services; deposit products, including checking, time, savings, money market, and certificates of deposit, as well as sweep accounts; letters of credit; and trust and wealth management services, such as financial and estate planning, trustee and custodial, investment management, tax, insurance, and business planning, corporate retirement plan consulting and administration, and retail brokerage services. The company was founded in 1881 and is headquartered in Effingham, Illinois.

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.