Analyzing ABN AMRO Bank (OTCMKTS:AAVMY) and Orange County Bancorp (NASDAQ:OBT)

Orange County Bancorp (NASDAQ:OBT) and ABN AMRO Bank (OTCMKTS:AAVMY) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Insider & Institutional Ownership

42.5% of Orange County Bancorp shares are held by institutional investors. 8.2% of Orange County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Orange County Bancorp and ABN AMRO Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orange County Bancorp	30.80%	16.44%	1.75%
ABN AMRO Bank	14.22%	9.12%	0.56%

Dividends

Orange County Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. ABN AMRO Bank pays an annual dividend of $1.19 per share and has a dividend yield of 2.6%. Orange County Bancorp pays out 20.3% of its earnings in the form of a dividend. ABN AMRO Bank pays out 36.7% 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Orange County Bancorp and ABN AMRO Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange County Bancorp	0	0	2	2	3.50
ABN AMRO Bank	0	1	5	1	3.00

Orange County Bancorp currently has a consensus price target of $43.25, suggesting a potential upside of 17.11%. Given Orange County Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Orange County Bancorp is more favorable than ABN AMRO Bank.

Earnings & Valuation

This table compares Orange County Bancorp and ABN AMRO Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange County Bancorp	$158.13 million	3.13	$41.61 million	$3.55	10.40
ABN AMRO Bank	$19.04 billion	1.96	$2.30 billion	$3.24	14.01

ABN AMRO Bank has higher revenue and earnings than Orange County Bancorp. Orange County Bancorp is trading at a lower price-to-earnings ratio than ABN AMRO Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Orange County Bancorp beats ABN AMRO Bank on 11 of the 16 factors compared between the two stocks.

About Orange County Bancorp

Orange County Bancorp, Inc., through its subsidiaries, provides commercial and consumer banking products and services, and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments, and individuals. It accepts various deposits, including interest-bearing and noninterest-bearing demand accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company also offers commercial real estate loans, commercial and industrial loans, commercial real estate construction loans, residential real estate loans, home equity loans, and consumer loans. In addition, it provides traditional trust and administration, asset management, financial planning, and wealth management services. The company operates full-service branches and loan production office in Orange, Westchester, Rockland, and Bronx counties in New York. Orange County Bancorp, Inc. was founded in 1892 and is headquartered in Middletown, New York.

About ABN AMRO Bank

ABN AMRO Bank N.V. provides various banking products and financial services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; investment and insurance products; and consumer, personal, car, and home improvement loan. It also issues, promotes, manages, and processes credit cards; trade finance, international payments, and treasury management; corporate finance and equity capital market; and revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. The company was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands. ABN AMRO Bank N.V. operates as a subsidiary of Stichting Administratiekantoor Continuïteit Abn Amro Bank.