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

Earnings & Valuation

This table compares ServisFirst Bancshares and Origin Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ServisFirst Bancshares $348.16 million 5.22 $136.94 million $2.53 13.47
Origin Bancorp $229.34 million 3.53 $51.60 million $2.20 15.59

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

Insider & Institutional Ownership

47.4% of ServisFirst Bancshares shares are owned by institutional investors. Comparatively, 45.1% of Origin Bancorp shares are owned by institutional investors. 13.6% of ServisFirst Bancshares shares are owned by company 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.

Profitability

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

Net Margins Return on Equity Return on Assets
ServisFirst Bancshares 39.33% 20.43% 1.85%
Origin Bancorp 22.50% 10.95% 1.17%

Analyst Ratings

This is a summary of current ratings and price targets for ServisFirst Bancshares and Origin Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServisFirst Bancshares 0 2 1 0 2.33
Origin Bancorp 0 1 1 1 3.00

ServisFirst Bancshares presently has a consensus price target of $44.00, indicating a potential upside of 29.07%. Origin Bancorp has a consensus price target of $43.00, indicating a potential upside of 25.36%. Given ServisFirst Bancshares’ higher probable upside, analysts plainly believe ServisFirst Bancshares is more favorable than Origin Bancorp.

Dividends

ServisFirst Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. Origin Bancorp pays an annual dividend of $0.13 per share and has a dividend yield of 0.4%. ServisFirst Bancshares pays out 23.7% of its earnings in the form of a dividend. Origin Bancorp pays out 5.9% 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. ServisFirst Bancshares has raised its dividend for 4 consecutive years. ServisFirst Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

ServisFirst Bancshares beats Origin Bancorp on 12 of the 16 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers in the United States. It offers demand, time, savings, and other deposits; checking, money market, and IRA accounts; and various certificates of deposit. The company also provides commercial lending products, such as seasonal loans, bridge loans, and term loans for working capital, expansion of the business, or acquisition of property, plant, and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. In addition, it offers other banking products and services comprising telephone and mobile banking, direct deposit, Internet banking, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit card systems, as well as Visa credit cards; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. Further, the company, through its subsidiary, SF Intermediate Holding Company, Inc., operates as a real estate investment trust for the United States income tax purposes; and holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. It operates 20 full-service banking offices located in Jefferson, Shelby, Madison, Montgomery, Mobile, and Houston Counties in Alabama; Escambia and Hillsborough Counties in Florida; Cobb and Douglas Counties in Georgia; Charleston County in South Carolina; and Davidson County in Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

About Origin Bancorp

Origin Bancorp, Inc. operates as the 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 Louisiana, Texas, and Mississippi. It offers accepts noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and grants single and multi-family real estate, residential construction, and commercial building loans, as well as loans to small and medium-sized businesses, and consumers. The company also offers personal and commercial property, and casualty insurance products; products and services, including 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; and mortgage origination and servicing. As of April 10, 2018, it operated approximately 40 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.

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