Financial Comparison: Origin Bancorp (NASDAQ:OBNK) versus Lakeland Financial (NASDAQ:LKFN)

Origin Bancorp (NASDAQ:OBNK) and Lakeland Financial (NASDAQ:LKFN) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Bancorp	$347.14 million	3.06	$87.71 million	$3.21	10.75
Lakeland Financial	$255.76 million	7.33	$93.77 million	$3.85	19.08

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Origin Bancorp	20.47%	10.45%	0.97%
Lakeland Financial	22.85%	13.64%	1.37%

Analyst Ratings

This is a summary of current recommendations for Origin Bancorp and Lakeland Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Bancorp	0	0	0	0	0.00
Lakeland Financial	0	2	1	0	2.33

Lakeland Financial has a consensus target price of $71.00, suggesting a potential downside of 3.35%. Given Lakeland Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Lakeland Financial is more favorable than Origin Bancorp.

Insider & Institutional Ownership

47.2% of Origin Bancorp shares are owned by institutional investors. Comparatively, 81.2% of Lakeland Financial shares are owned by institutional investors. 6.2% of Origin Bancorp shares are owned by company insiders. Comparatively, 3.3% of Lakeland Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Origin Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Lakeland Financial has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Dividends

Origin Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Lakeland Financial pays an annual dividend of $1.92 per share and has a dividend yield of 2.6%. Origin Bancorp pays out 18.7% of its earnings in the form of a dividend. Lakeland Financial pays out 49.9% 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 raised its dividend for 4 consecutive years and Lakeland Financial has raised its dividend for 13 consecutive years. Lakeland Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Lakeland Financial beats Origin Bancorp on 13 of the 17 factors compared between the two stocks.

About Origin Bancorp

Origin Bancorp, Inc. is a bank holding company, which engages in the provision of financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients. The firm’s products and services include lending, deposits, mortgage banking, and insurance. It also offers other banking services such as Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit boxes, U.S. savings bonds, and automatic account transfers. The company was founded in 1991 and is headquartered in Ruston, LA.

About Lakeland Financial

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services in the United States. The company accepts various deposit products, such as noninterest bearing, interest-bearing checking, savings, money market, NOW, and demand deposits. Its loan products include commercial and industrial, commercial real estate and multi-family residential, construction, agri-business and agricultural, consumer 1-4 family mortgage, and other commercial and consumer loans. The company also provides retail and merchant credit card services; corporate treasury management, wealth advisory, and trust services; retail brokerage services, including various financial and investment products, such as annuities and life insurance; and mobile business banking and on-line treasury management services. It serves commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and health care industries. The company was founded in 1872 and is headquartered in Warsaw, Indiana.