Head-To-Head Review: Citizens Financial Group (NYSE:CFG) and Origin Bancorp (NASDAQ:OBK)

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

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Citizens Financial Group and Origin Bancorp, as provided by MarketBeat.com.

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

Citizens Financial Group presently has a consensus target price of $49.00, indicating a potential upside of 3.23%. Origin Bancorp has a consensus target price of $43.40, indicating a potential upside of 10.22%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Origin Bancorp is more favorable than Citizens Financial Group.

Insider and Institutional Ownership

94.9% of Citizens Financial Group shares are owned by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are owned by institutional investors. 0.6% of Citizens Financial Group shares are owned by insiders. Comparatively, 6.2% of Origin Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Citizens Financial Group pays an annual dividend of $1.68 per share and has a dividend yield of 3.5%. Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Citizens Financial Group pays out 55.4% of its earnings in the form of a dividend. Origin Bancorp pays out 24.4% 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.

Volatility & Risk

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

Valuation & Earnings

This table compares Citizens Financial Group and Origin Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Financial Group	$12.36 billion	1.68	$1.51 billion	$3.03	15.67
Origin Bancorp	$355.75 million	3.45	$76.49 million	$2.46	16.01

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.

Summary

Origin Bancorp beats Citizens Financial Group on 9 of the 16 factors compared between the two stocks.

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.

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.