Critical Analysis: Origin Bancorp (NASDAQ:OBK) & Signature Bank (NASDAQ:SBNY)

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

Analyst Recommendations

This is a breakdown of recent recommendations for Signature Bank and Origin Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	0	0	0	0.00
Origin Bancorp	0	0	5	0	3.00

Origin Bancorp has a consensus price target of $42.20, indicating a potential upside of 26.30%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Origin Bancorp is more favorable than Signature Bank.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
Origin Bancorp	12.34%	6.91%	0.77%

Dividends

Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 120.7%. Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. Origin Bancorp pays out 24.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Signature Bank and Origin Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$2.70 billion	0.01	$1.34 billion	N/A	N/A
Origin Bancorp	$358.20 million	2.91	$76.49 million	$2.44	13.69

Signature Bank has higher revenue and earnings than Origin Bancorp.

Volatility and Risk

Signature Bank has a beta of 11.34, suggesting that its share price is 1,034% more volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

11.1% of Signature Bank shares are owned by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by insiders. Comparatively, 6.4% 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 is poised for long-term growth.

Summary

Origin Bancorp beats Signature Bank on 9 of the 14 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

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.