Origin Bancorp (NASDAQ:OBK) and M&T Bank (NYSE:MTB) Financial Contrast

Origin Bancorp (NASDAQ:OBK) and M&T Bank (NYSE:MTB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Origin Bancorp and M&T Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Bancorp	$619.96 million	1.90	$76.49 million	$2.46	15.38
M&T Bank	$13.45 billion	2.48	$2.59 billion	$14.63	13.73

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

Volatility & Risk

Origin Bancorp has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, M&T Bank has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Profitability

This table compares Origin Bancorp and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Origin Bancorp	12.34%	6.91%	0.77%
M&T Bank	19.24%	10.12%	1.25%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Origin Bancorp and M&T Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Bancorp	0	1	3	1	3.00
M&T Bank	1	8	8	0	2.41

Origin Bancorp currently has a consensus target price of $43.40, indicating a potential upside of 14.68%. M&T Bank has a consensus target price of $221.68, indicating a potential upside of 10.34%. Given Origin Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Origin Bancorp is more favorable than M&T Bank.

Insider & Institutional Ownership

54.7% of Origin Bancorp shares are held by institutional investors. Comparatively, 84.7% of M&T Bank shares are held by institutional investors. 6.2% of Origin Bancorp shares are held by insiders. Comparatively, 0.8% of M&T Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers 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 1.6%. M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 2.7%. Origin Bancorp pays out 24.4% of its earnings in the form of a dividend. M&T Bank pays out 36.9% 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.

Summary

M&T Bank beats Origin Bancorp on 10 of the 17 factors compared between the two stocks.

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.

About M&T Bank

M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management and investment services. It operates through the following segments: Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking. The Business Banking segment provides services to small businesses and professionals through the company’s branch network, business banking centers, and other delivery channels such as telephone banking, Internet banking and automated teller machines. The Commercial Banking segment offers credit products and banking services for middle-market and large commercial customers. The Commercial Real Estate segment includes credit and deposit services to its customers. The Discretionary Portfolio segment consists of investment and trading securities, residential mortgage loans and other assets, short-term and long-term borrowed funds, brokered certificates of deposit and interest rate swap agreements related thereto, and Cayman Islands branch deposits. The Residential Mortgage Banking segment consists of residential mortgage loans and sells substantially all of those loans in the secondary market to investors. The Retail Banking segment offers services to consumers through several delivery channels which include branch offices, automated teller machines, telephone banking, and Internet banking. The company was founded on August 30, 1856, and is headquartered in Buffalo, NY.