Head-To-Head Review: Origin Bancorp (NASDAQ:OBNK) & Randolph Bancorp (NASDAQ:RNDB)

Origin Bancorp (NASDAQ:OBNKGet Rating) and Randolph Bancorp (NASDAQ:RNDBGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Valuation and Earnings

This table compares Origin Bancorp and Randolph Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Origin Bancorp $303.85 million 3.38 $108.55 million $4.11 10.50
Randolph Bancorp $56.04 million 2.45 $9.60 million $0.78 33.97

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

Profitability

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

Net Margins Return on Equity Return on Assets
Origin Bancorp 31.83% 14.10% 1.23%
Randolph Bancorp 9.46% 5.31% 0.66%

Insider & Institutional Ownership

55.5% of Origin Bancorp shares are held by institutional investors. Comparatively, 44.5% of Randolph Bancorp shares are held by institutional investors. 6.3% of Origin Bancorp shares are held by insiders. Comparatively, 9.2% of Randolph Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Randolph Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.1%. Origin Bancorp pays out 14.6% of its earnings in the form of a dividend. Randolph Bancorp pays out 38.5% 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. Origin Bancorp has increased its dividend for 4 consecutive years. Origin Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Origin Bancorp has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Randolph 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 recent ratings and target prices for Origin Bancorp and Randolph Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Origin Bancorp 0 0 0 1 4.00
Randolph Bancorp 0 1 1 0 2.50

Origin Bancorp currently has a consensus price target of $55.00, suggesting a potential upside of 27.49%. Randolph Bancorp has a consensus price target of $27.00, suggesting a potential upside of 1.89%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Origin Bancorp is more favorable than Randolph Bancorp.

Summary

Origin Bancorp beats Randolph Bancorp on 15 of the 18 factors compared between the two stocks.

About Origin Bancorp

(Get Rating)

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 Randolph Bancorp

(Get Rating)

Randolph Bancorp, Inc. operates as the bank holding company for Envision Bank that provides financial services to individuals, families, and small to mid-size businesses in Massachusetts, Rhode Island, and southern New Hampshire. It operates through two segments, Envision Bank and Envision Mortgage. The company accepts checking, NOW, money market, and savings accounts, as well as certificates of deposit and individual retirement accounts. It also offers one- to four-family residential mortgage, commercial real estate, commercial and industrial, construction, and consumer loans; home equity loans and lines of credit; and investment securities. In addition, the company provides remote deposit capture products for business customers to meet their online banking needs; cash management solutions, including ACH origination, wire transfer, positive pay, and account reconciliation; and digital banking services. It operates five branch offices in Massachusetts; six loan production offices; and lending centers located in Massachusetts and Southern New Hampshire. The company was founded in 1851 and is headquartered in Quincy, Massachusetts.

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